Friend at Economic Development Budget Hearing Points To NYs Burdensome Regulations Hindering Job Growth
Assemblyman Christopher S. Friend (R,C,I-Big Flats) at a Joint Legislative Budget Hearing on Economic Development this week pointed to overregulation as the key hindrance in job growth throughout the state. The governor, however, continues to spend hundreds of millions annually with little accountability for the underperforming job growth from his programs.
The governor keeps spending public dollars on our job growth problem without much to show for all the billions spent over the years, said Friend, the Ranking Minority on the Assembly Committee on Economic Development, Job Creation, Commerce and Industry. We have some of the most talented people in our workforce, but we rank among the worst states for taxation and regulation. These issues are the true cause of stalled growth in our state. Cutting back red tape on business will allow flourishing throughout the entire state, not just New York City.
The Tax Foundation ranks New Yorks business climate second worst in the country this year. CNBC ranks New York toward the bottom on their 2019 Americas Top State for Business, while the 2019 Thumbtack Small Business Friendliness Survey gave New York a D grade.
Tax breaks on business can make a significant impact. The Manufacturers Association of Central New York testified that the 2014 zero percent corporate franchise tax rate for C-Corps manufacturers provided needed relief that has made the state one of the top 10 pro-manufacturing income tax climates in the country. This, however, only applies to a small portion of manufacturers in the state, leaving about 75 percent of such firms missing out on critically needed tax relief. Friend would like to see the inclusion of more manufacturers to spur increased growth in this sector.
Friend believes the hostile business climate deters investment, shutters mom-and-pop shops and prevents large companies from relocating into the state. He sponsors legislation addressing these concerns:
- Small Business Full Employment Act (A.4553) Provides various tax cuts and regulatory relief to better support small business;
- Economic Development Transparency and Oversight (A.5851) Reins in excessive and poorly performing economic development spending; and
- Regional Relief for Regional Minority and Women-owned Business Enterprise (MWBE) Goals (A.1237) Provides relief to municipalities in meeting the 30 percent MWBE-certified contracting requirement by acknowledging the regional demographic differences of rural upstate New York.