Andrew Cuomo is trying to thread an awfully small needle these days as he attempts to overhaul the tax code and increase revenue without boldly violating his pledge to raise taxes on upper income earners
Thomas Kaplan in The New York Times reported yesterday that business was largely behind the tax overhaul; today however the Business Council–one of the state’s leading pro-growth advocates–sent out a statement reminding the governor that the focus should be on cutting spending.
“New York’s lingering budget problems are a result of poor economic performance influenced by a bad business climate, topped with unsustainable growth in government spending,” said Heather Briccetti, CEO of the group.
In a release she notes
- that in the last decade total state spending is up by nearly $70 billion
- state tax and fee receipts in New York are up $12 billion over the past five years
- There have been more than 130 separate tax and fee increases
“New York needs jobs and this is the time for Albany to focus on our tax policies to help create them,” Ms. Bricetti added. “In 2012, lawmakers must continue to reduce the cost of government, with further reforms in major state spending programs, and mandate relief that reduces the cost of local government.”
She also however seems to support Gov. Cuomo’s stated desire to overhaul the tax code in order to spur private sector job growth. The release notes that over the last ten years,
But most important, the state’s long-term future requires renewed economic growth in high-value sectors, the state lost 496,000 jobs in the state’s top paying private sector industries – finance/insurance, management/administration, utilities, information, professional/technical services, wholesale trade, construction and manufacturing–while virtually all job growth in New York over this ten-year period was in below-average wage sectors, like health and social services that rely on government funding.
“New York has been replacing high paying jobs with lower paying jobs. Jobs that compete in the international economy are being replaced with jobs that are tied to regional markets and state and local government funding,” Ms. Bricetti added, ”Going forward, New York needs to make the state more attractive for private sector investment in higher wage occupations. New York needs to lower state-imposed costs on business and capital, and remove regulatory and procedural barriers to new private sector investment and job growth. Renewed economic growth will benefit workers and families, and produce the tax revenues needed to finance necessary public services. An improved business climate – not new taxes – needs to be Albany’s top priority in 2012.”
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