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Assemblyman
Brian M. Kolb
Assembly District 131
 
Assembly Minority Leader Brian Kolb Calls On Governor Cuomo To Rescind Unemployment Insurance Assessment Surcharge On Small Businesses
July 26, 2011

Assembly Minority Leader Brian M. Kolb (R,I,C-Canandaigua) today sent a letter to Governor Andrew M. Cuomo urging him to rescind the New York State Department of Labor’s recent Unemployment Insurance (UI) Interest Assessment Surcharge imposed on all businesses and refund any businesses that have paid this assessment to date.

“Our small-business owners are doing their best to create jobs and bring New York out of this recession. If the United States Congress does not enact legislation to make Federal loans to state UI trust funds interest free, New York must take action to ensure that the men and women that create new jobs do not bear the burden of this onerous assessment. I suggest using a portion of the nearly $800 million in surplus first quarter tax receipts from the current fiscal year to cover the $95 million interest payment of the Federal loans, instead of nickel-and-diming New York businesses with another costly assessment,” Leader Kolb said.

The surcharge is to cover a $95 million interest payment on Federal loans to the State’s UI Trust Fund to pay UI benefits to multitudes of unemployed workers.

“With the enactment of a Real Property Tax Cap this year and the launch of Regional Economic Development Councils today, our State is in position to craft a true economic development plan that creates jobs and puts hundreds of thousands of unemployed New Yorkers back to work,” Leader Kolb said.

“This UI Interest Assessment Surcharge will be another burden placed on the backs of businesses and is detrimental to recent strides to improve New York’s business climate. Our focus now needs to be Jobs, Jobs, Jobs! That is why I urge Governor Cuomo to stop the UI Interest Assessment Surcharge and send a clear message to business owners across the State that New York is once again Open For Business!” Leader Kolb concluded.

Below is Assembly Minority Leader Brian Kolb’s letter that was hand-delivered to Governor Cuomo today.

July 26, 2011

The Honorable Andrew M. Cuomo
Governor, State of New York
NYS State Capitol
Executive Chamber
Albany, NY 12224

Dear Governor Cuomo:

I respectfully request that you rescind the recent Unemployment Insurance (UI) Interest Assessment Surcharge imposed on all businesses by the New York State Department of Labor and refund any businesses that have paid this assessment to date. As you know, this surcharge is to cover a $95 million interest payment on Federal loans to the State’s UI Trust Fund to pay UI benefits to multitudes of unemployed workers.

For the past few years, the United States Congress has enacted legislation to make Federal loans to state UI trust funds interest free. Unfortunately, we are still waiting for Congressional action to continue this policy.

If Congress fails to act, I suggest using a portion of the nearly $800 million in surplus first quarter tax receipts from the current fiscal year to cover the $95 million interest payment of the Federal loans, instead of nickel and diming New York businesses with another costly assessment.

With the enactment of a Real Property Tax Cap this year and the launch of Regional Economic Development Councils today, our State is in position to craft a true economic development plan that creates jobs and puts hundreds of thousands of unemployed New Yorkers back to work.

As a former entrepreneur and businessman, I know first hand how New York businesses are over-regulated and over-taxed. The impact of this unfriendly business climate has contributed to numerous job losses in various sectors – with the manufacturing industry alone facing a nearly 40 percent decrease over the past decade.

This UI Assessment Interest Surcharge will be another burden placed on the backs of businesses and is detrimental to recent strides to improve New York’s business climate. Our focus now needs to be Jobs, Jobs, Jobs! That is why I urge you to rescind the UI Interest Assessment Surcharge and send a clear message to business owners across the State that New York is once again Open For Business! Thank you.

Sincerely,
Brian M. Kolb
Assembly Minority Leader

 
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