Bill by Ranzenhofer would reward employers who hire those getting jobless benefits
Submitted by Howard Owens on February 4, 2010 - 3:28pm
Sen. Mike Ranzenhofer (R-61) wants to give New York businesses that hire from the ranks of the unemployed a $3,000 tax credit.
Ranzenhofer announced his proposed legislation today in Batavia at the Genesee County Career Center on East Main Street.
"It's a win, win, win situation," Ranzehofer said. "It helps people who are looking for work. It's good for employers. But it's also good for the economy."
Under the proposal, New York businesses that hire a person currently drawing unemployment benefits will get a $3,000 tax break.
There are currently 300,000 people out of work, Ranzenhofer said, and among those drawing unemployment, they are getting checks averaging $314 per week. Razenhofer said his proposed tax credit will pay for itself in 10 weeks with cost savings on unemployment benefits.
Unemployment benefits can be drawn for two years.
Ranzenhofer also said that by putting more people back to work, those people will have more money to spend, generating more tax revenue for the state.
While the tax incentive itself may not spur some employers to hire -- challenged as they are by other expenses, from health insurance, taxes and the cost of equipment upgrades -- the tax credit may be just what it takes to get other businesses to add new positions.
"To do nothing and not give them this kind of incentive, when it doesn't cost us any money, is not a good thing," Ranzenhofer said.
While it would be better to lower the tax burden on New York businesses, Ranzenhofer said, "I don't see that happening this year."
Scott Gage, executive director of the jobs center, praised the legislation.
"This is going to be an opportunity for people who have retooled their skills during this economic downturn to be hired and maybe they would have got that opportunity if not for the resources created by this tax credit," Gage said.