Proposed Bill Called Ridiculous
MASSENA - A spokesman for the state Democratic majority railed against a jobs proposal put forward by five Republican senators this week.
But state Senator Joseph A. Griffo, R-Rome, says the bill is actually modeled after federal legislation, sponsored by Washington Democrats, which cleared the U.S. House this week despite being derided by Republicans there as ineffective and politically motivated.
Sponsored by state Senator James S. Alesi and co-sponsored by Mr. Griffo and GOP senators Dean G. Skelos, John A. DeFrancisco and Michael Ranzenhofer, the state version of the jobs bill offers tax breaks to employers who create new jobs and additional credits to those who offer work to individuals currently drawing unemployment.
Mr. Griffo pointed out that, if passed, the state measures could work in concert with new federal benefits to give businesses approximately $10,269 in tax incentives over three years for each new job they create.
"I'm hopeful it will elicit some bipartisan support," Mr. Griffo said. "Conference-wide, the Republicans are very strongly behind it. There's a very similar version the U.S. Senate passed that had bipartisan support as well."
The proposal debated in Washington offered an exemption on the 6.2 percent federal payroll tax to any business that hired a worker who had been on the unemployment rolls for at least 60 days. If that worker remained employed for a year, the business would be eligible for an additional $1,000 tax credit under the plan.
The state GOP bill offers a $1,487 state tax credit to any business that creates a new job with a salary of at least $35,000 per year. If that job is filled by someone from the unemployment ranks, the business would be offered another $3,000 in state tax credits.
A number of additional measures, such as a moratorium on new taxes, fees or regulations for businesses, the creation of a commission on regulatory reform and the repeal of a small business franchise tax and personal income tax increase for small businesses were also included in the state GOP proposal.
Mr. Griffo touted the state Republican plan as meaningful action that will help spur economic development, which he contrasted with the Senate Democrat's plan to host business roundtables around the state to draw input from entrepreneurs and business owners on how the state could be more business-friendly.
"The latest idea coming out of the Senate Dems was to hold these roundtables," Mr. Griffo said. "We need to go beyond sitting around talking about doing something and actually do something. This is action that can be taken that would invigorate activity."
Travis Proulx, a spokesman for the state Senate majority, called the GOP plan a "ridiculous piece of legislation" and questioned whether Mr. Griffo and his colleagues had bothered to consult anyone in business before presenting the bill.
"If you can find one credible economist who agrees with Griffo's plan, I'll eat my shoes," Mr. Proulx said. "He clearly didn't bring people to the table. If a small business in Ogdensburg or Potsdam can't afford a $30,000 salary with benefits now, why would they do it for a $2,500 credit?"
Instead, Mr. Proulx said Senate Democrats are reaching out to businesses large and small in an attempt to craft comprehensive reform that would spur job growth, support small businesses and provide relief to taxpayers.
"That's the type of help small businesses need, not some tax credit to hire people they can't afford to hire in the first place," Mr. Proulx said. "Taxpayers would be far better served if a lifetime politician like Joe Griffo spent more time listening to small business and less time introducing partisan legislation on topics he knows nothing about."
Mr. Griffo said he was disappointed to hear the spokesman disregard and discredit the proposal, rather than attempting to engage lawmakers across the aisle in an exchange of ideas that could help solve some of New York's problems.
"Not only to dismiss it but to disparage it is a reflection on the poor state of affairs in the Democratic party and in New York," Mr. Griffo said. "We're experiencing some of the toughest times we've ever experienced and instead of trying to work across the aisle and get results, they want to take potshots. Meanwhile, we're trying to do something."
He said he has spoken to business owners from throughout his sprawling district, which reaches from Utica to Massena, and felt the measures included in the bill would go a long way in bringing them relief.
In Washington, members of the Republican opposition argued the federal bill would actually do little to solve the unemployment problem.
But Democratic lawmakers pointed out that the bill was simply one step toward tackling what is a very complex problem. Job counts released Friday put unemployment at 9.7 percent nationwide.
"This package is not a panacea; it's not going to solve everything," U.S. Senator Charles E. Schumer, D- New York, said in an Associated Press story about the Senate's passage of the bill last week.
Mr. Griffo's message was very similar.
"By no means, should this be considered a panacea to helping what ails business in this state," he said, noting that Albany should also pursue reforms that will lower taxes, remove regulations and bring down utility costs in order to spur economic growth.
