A hostile state to do business
Written by Written by Rob Lillpopp on July 30, 2010 – 5:32 am

In an op-ed in today’s Times Union, Kenneth Adams, president and CEO of The Business Council, expresses his concern that state government is creating a climate of uncertainty in New York, rather than fostering an environment that encourages private sector investment and job creation.

“The nation may be creeping out of the recession. Second quarter corporate earnings reports are encouraging. Manufacturing is doing well. The banking sector is on solid ground again. Exports are up.

Still, employment numbers remain grim, and if there is one state likely to suffer a “jobless recovery,” it’s New York.

Just when the rest of the state recognizes that the only thing that matters is private sector job growth, Albany has come up with a new strategy to deter investment and discourage companies from hiring: uncertainty.

New York business owners have had to cope with high taxes and burdensome regulations for decades. Now there’s more. It has become increasingly hard to predict what’s next in the state’s business environment. The uncertainty created by state government is stripping away something business owners depend on in tough economic times: predictability.

It’s not just that politicians have spent seven months unable to agree on a state budget. The sense of uncertainty is exacerbated when policy makers can’t make up their minds or break promises previously made to the business community.

Beyond several anti-business measures built into the 2011 budget, the two worst decisions for the long-term economic health of New York involve the state violating commitments it made to firms that have been playing by the rules and investing here.

First, a three-year deferral of already earned tax credits. Many companies have made significant investments to create and retain jobs in New York, clean up brownfields or make their facilities cleaner and more efficient. Part of their calculation in making those investments included tax credits to offset the high cost of doing business here. Now the state says, “Hold on, you can’t get your credits until 2013.”

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