NYS Budget Update – NFIB Speaks Out Against Spending, Tax Proposals

February 16, 2023

NYS Budget Update – NFIB Speaks Out Against Spending, Tax Proposals

Last week, NFIB delivered testimony to the NYS Joint Legislative Committee on Taxes, one of more than a dozen bipartisan conference committees comprised of both Senators and Members of Assembly that convene during the state’s annual budget process. NFIB’s testimony took umbrage with several specific proposals, including plans to increase the employer-paid MTA Payroll Tax by hundreds of millions of dollars and doubling New York’s already wildly generous Hollywood handout – the NYS Film Tax Credit – that creates a minimal number of permanent jobs in the state. Perhaps most disappointing, was the executive budget’s failure to even acknowledge the growing unemployment insurance crisis, which left unaddressed will potentially add hundreds of dollars of additional UI costs per employee annually for years to come. The crisis is a direct result of state ordered work stoppages during the pandemic and the resulting debt owed to the federal government for emergency loans needed to pay the historic number of unemployment claims. More than 30 other states were in a similar predicament, but only one has made zero effort to pay back its debt – New York. NFIB warned that this “dereliction of fiscal responsibility … will equate to new payroll taxes and assessments in the thousands of dollars for New York’s Main Street employers.” The Joint Legislative Committees are charged with receiving feedback from state agencies and stakeholder interests on every aspect of Governor Kathy Hochul’s FY2024 Executive Budget proposal. This process will continue for several weeks, after which each house of the legislature will advance their own spending plans and priorities that will ultimately be negotiated with the Governor’s. NFIB will continue to engage lawmakers and the Governor’s office throughout the state budget process, including doing everything we can to inform our members and elevate your voice, the voice of small business. See NFIB NY State Director Ashley Ranslow’s Initial Response to the FY2024 Executive Budget Proposal. Review Governor Kathy Hochul’s entire FY2024 Executive Budget Proposal.

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State:

New York

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