Griffo Jobs Bill Creates Hiring Tax Credits
MASSENA - Small businesses that bring on new employees could benefit from tax credits included in a jobs bill proposed by state Senator Joseph A. Griffo, R-Rome, and four of his colleagues.
Members of the Senate Republican Conference unveiled a jobs proposal this week that would create a New York Jobs Tax Credit, eliminate a franchise tax on small businesses, scale back a personal income tax surcharge levied on small businesses last year and place a temporary ban on the passage of any new taxes, fees or regulations on businesses.
The bill was sponsored by Senator James S. Alesi and co-sponsored by Mr. Griffo and GOP senators Dean G. Skelos, John A. DeFrancisco and Michael Ranzenhofer.
Mr. Griffo said the bill was modeled after a federal jobs plan that passed the U.S. House of Representatives Thursday. The U.S. Senate passed its version of the $13 billion jobs bill last week.
The senator said the state version of the bill could help New York businesses create thousands of new jobs by giving incentives to firms that add employees or bring on workers currently drawing unemployment.
Under that plan, a business that creates a new job with a salary of at least $35,000 per year would be eligible for a $1,487 tax credit. If the new employee had been drawing unemployment prior to being hired to fill the new position, the employer would bring in an additional $3,000 in tax credits.
When combined with the new federal benefits included in the jobs bill, Mr. Griffo points out businesses could enjoy $10,269 in tax credits over three years for each job created.
Mr. Griffo and his colleagues believe the New York Jobs Tax Credit, combined with several other elements of their plan, could go a long way in helping the state along the road to economic recovery.
"Here in the North Country, we need immediate action that propels our workforce forward at every stage," Mr. Griffo said. "Giving a business credit for hiring someone who is drawing unemployment is really a win-win-win— the individual benefits because he gets a job, the business benefits from getting additional tax credits and the state benefits because we're paying less into the unemployment system. Why not spend money that way instead of paying it in unemployment?"
The senator said the beauty of the Republican plan lies in its simplicity. He said it will be easy to implement and would likely pay for itself by generating additional income taxes paid by new employees and decreasing the number of New Yorkers drawing unemployment.
Other elements of the plan include eliminating corporate franchise taxes and income tax surcharges on small businesses and manufacturers who employ less than 50 people or post a net income of less than $2 million; placing a moratorium on new taxes, fees and regulations on businesses and creating a commission to investigate regulatory reform.
"Everybody is talking about jobs," Mr. Griffo said. "This is an effort to really do something about them, to foster their creation. It focuses on small business, which is really the cornerstone of our economy in this state."
