Magnarelli Hails New Tax Free NY Initiative

May 31, 2013

"Governor Cuomo's Tax-Free NY proposal is the most innovative and exciting economic development initiative the state has seen in decades. It has the potential to kick-start high-tech economic development across upstate New York and attract unprecedented private investment to university communities like Syracuse. This proposal could overnight transform the perception of upstate New York from a place hostile to business, to one where an entrepreneur can come, invest and grow. Others have suggested that across the board tax cuts should be passed instead of the Governor's proposal. Of course tax cuts are ideal, but they are expensive, with even a modest one-percentage point reduction costing the state $6 billion it does not have. By favoring impossible across the board tax cuts, we would be cutting taxes for some people in New York City who don't need it."

Magnarelli continued, “I am a believer in university/business partnerships as a means to create new businesses/jobs. For 15 years I have been waiting for a proposal that would truly utilize the academic engines upstate has to spur new and creative ideas and turn them into real jobs. This proposal does that, and ensures businesses will not leave the state for greener pastures. Current estimates show that 75% of high tech start-ups launched in New York State leave in the first year.”

According to Magnarelli, “It’s hard to understand why anyone from upstate would not embrace this program.” He continues, “This program is targeted to upstate. With over 50 SUNY campuses, as well as an even greater number of private universities, located upstate, 90% of the benefits of this program will be directed to our region. And the beauty of the program is that it doesn’t take any money away from our state budget like across the board tax cuts would, as some have indicated. When you cut taxes across the board, you also must cut vital programs such as education and healthcare. This program does not spend any current state tax dollars; it costs the state nothing. It creates the environment for new high-tech businesses, new good-paying jobs and most importantly focuses on upstate keeping the best and brightest in our own communities.”