Assemblyman Michael A. Montesano (R,I,C-Glen Head) spoke out today against Albany’s decision to force job creators to pay a new fee on each new and existing employee. The interest assessment surcharge is meant to cover a $95 million interest payment on federal loans to the state’s Unemployment Insurance Trust Fund to pay benefits to unemployed workers. Assemblyman Montesano stressed the importance of cutting costs on small business to promote economic growth in the current fragile recovery.
“The last thing we need to do in an economic downturn is to blunt job growth through a surcharge,” said Montesano. “With the newly implemented Regional Economic Development Councils, we are working to put small businesses in the driver’s seat of economic growth in this state, and yet, are forcing them to pay a payroll surcharge on each new employee they hire. It is time for Albany to stop contradicting itself by saying it’s working to bring economic growth to the state and then block it by adding a new fee on businesses. The Empire State has nearly 800,000 people looking for work; a new penalty on businesses trying to hire them is not going to cut the unemployment rate.”
Assemblyman Montesano noted that the state could afford to make the $95 million payment with neither a new fee on job creators nor higher taxes. “There is nearly an $800 million surplus in tax receipts that can easily cover the $95 million payment without passing it on to our small businesses,” he said. “I am encouraging businesses to write, call or email the Governor’s office and ask him to use the tax surplus to pay down the state’s debts instead of killing new jobs for hardworking New Yorkers.”