NFIB Identifies Tax Relief, Paid Sick Leave, Prevailing Wage Expansion as Top 2020 Advocacy Priorities
ALBANY Feb. 4, 2020 — NFIB, New York’s leading small business advocacy association, opined today on New York’s 2020 state budget and the organization’s advocacy priorities that are most critical to the thousands of small, independent businesses across New York that comprise NFIB’s membership.
Tax Relief For Small Businesses:
The association’s New York State Director, Greg Biryla identified several key policy proposals – both promising and of concern – that Governor Cuomo advanced in his State of the State address and Executive Budget last month, signaling tax relief for New York’s 450,000 small businesses as a chief priority.
“As always, New York faces significant challenges but is also presented with limitless opportunities. Homegrown economic growth and local job creation remain the most effective way to retain and attract investment, stabilize population and tax bases, and ensure our communities remain vibrant and dynamic,” said NFIB’s State Director, Greg Biryla. “Governor Cuomo’s proposal to reduce the Corporate Franchise Tax rate for small businesses while expanding the business income exemption to 15 percent for sole proprietors and small farms will deliver real relief to small businesses allowing them to devote resources to their own growth, hiring, and footprint.”
The state’s small business community is urging lawmakers in Albany to support the Governor’s tax cut proposal but also seek to expand its potential impact. Governor Cuomo’s proposal will provide needed relief to many small businesses, but it doesn’t currently extend to LLCs, which comprise the bulk of small businesses or partnerships.
“Small businesses come in all shapes and sizes, but the burdens from state taxes and regulations are felt by them all,” Biryla said. “The Governor’s proposal is a crucial step in delivering small businesses relief, and we are hopeful that he and the legislature are willing to take the next step to ensure Main Street’s businesses are as prosperous as those on Wall Street.”
Thirty-four organizations from across the state, including trade groups and chambers of commerce, joined last week to vocalize their support for Governor Cuomo’s proposal and urge legislative leaders to consider options for an expanded relief package. The letter (attached) cites existing legislation S.5954 (Kaplan, D -Great Neck) / A.6309 (Schimminger, D-Kenmore) as one approach that already enjoys bipartisan support.
Opposed to New or Expanded Mandates:
NFIB also expressed concern about proposals outlined in the executive budget that would mandate additional employee leave and expand the state’s prevailing wage requirement to certain private development projects.
“Mandating paid sick time on small businesses that are still adjusting to the added costs and administrative burdens of New York’s paid family leave mandate could be the final straw for many small businesses that simply lack the staffing and financial flexibility of their big box competitors,” Biryla said. “Independent business owners work with their employees to provide flexible time-off, and any additional leave mandates being contemplated need to take this into account by recognizing existing elective leave programs already in place.”
On the Governor’s prevailing wage proposal, Biryla noted that, “too often, prevailing wage is viewed through the prism of big labor and big real estate, but if construction costs skyrocket because of expanded prevailing wage, it’s small businesses that could lose opportunities and struggle to finance their growth.”
Perhaps more concerning is the creation of an unelected Public Subsidy Review Board which would be given broad latitude to make changes to the prevailing wage law, what constitutes a public works project, and when the prevailing wage is applied.
“The only thing worse for businesses than bad policy is unpredictable policy,” Biryla said.
New Health Care Taxes
Perhaps the most immediate fiscal challenge facing New York is a multi-billion-dollar deficit largely driven by rising costs in the state’s Medicaid program. The Governor is seeking to address Medicaid and the budget deficit by re-empaneling the Medicaid Redesign Team (MRT) to identify billions in savings via structural reforms. NFIB cautioned the MRT and legislators against increasing existing Health Care Reform Act taxes, the Covered Lives Assessment, or levying any new taxes on private health insurance plans that employers, including small businesses, provide to their employees.
“New York taxes private health insurance more than anything else aside from income and property,” Biryla said. “Our members habitually identify rising health insurance costs, which are driven by taxes, as a chief obstacle. Enough is enough. No new taxes.”
NFIB continues to monitor the state’s budget process and ensure that the voice of small business is heard in the halls of the Capitol. NFIB’s Small Business Day is March 10th in Albany.
###
