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Wednesday, July 29, 2015

DEAR NY GOVERNOR CUOMO...

BRYCE ON POLITICS

- About those preposterous "START-UP NY" television ads of yours.

(Click for AUDIO VERSION)
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Dear Governor Andrew Cuomo,

Over the last two years I have watched your "START-UP NY" television ads encouraging companies to move to New York. As a Floridian, I am baffled by the ads. I understand your intent of providing dozens of Tax Free Zones near universities and schools, to entice businesses and stem the exit of 100,000 people and jobs leaving your state each year, but is your program really working? Your major incentive is to allow businesses to move to New York where they can work tax free for ten years. At the end of this period, the exorbitant corporate taxes will spring back into effect causing companies to exit again. You will also defer state income taxes for workers for five years, but here in Florida we have no state income tax whatsoever, plus we're in a "Right to Work" state. There is also considerably more red tape and bureaucracy in your state as opposed to ours. Let us also not forget the differences in climate, where Florida doesn't suffer from the Arctic weather conditions New York does. So please carefully explain to me why a Floridian would want to move to New York when more people, companies, and opportunities are moving to our state and not yours?

What has been the result of your campaign so far? I'm told "START-UP NY" claims 110 businesses participate in the program, pledging 3,150 jobs. Are these real jobs or just pledged? I read a report your State Comptroller, Thomas P. DiNapoli, recently produced claiming the program is a disaster. His report follows a review by the Albany Bureau of "START-UP NY" which found the campaign cost $53 million since its inception in 2013, and produced a measly 76 jobs. The Associated Press (April 3, 2015) also reported, "The agency reported another 26 businesses have been approved so far this year, while 12 have withdrawn applications. The largest group of approved companies is 37 in Buffalo and western New York. Another 15 are on Long Island, seven in New York City and seven in the Southern Tier."

For the millions of dollars New Yorkers are paying for this campaign, and the minimal results, this doesn't sound very cost effective does it?

You are not alone though. Connecticut's Governor Malloy raised taxes a second time, after he promised he wouldn't, in excess of $1 billion, a new record. Between increases in real estate and corporate taxes, people are fleeing the Constitution State, and, No, they are not moving to New York to face the same financial burden.

However, Florida Governor Scott is visiting Connecticut and other states to encourage businesses to move to the Sunshine State. His selling points are simple: “Florida has no state income tax, and has cut taxes more than 40 times over the last four years. Unlike Connecticut, Florida is a right-to-work state, with no estate or gift tax. If you're a business that wants to pay less taxes so you can earn more money, come to Florida." No doubt he also mentions the lack of snow in our state.

Let me offer some simple advice; first, stop showing those ridiculous "START-UP NY" ads. They are demonstratively ineffective and waste the taxpayer's money. Second, offer a business friendly environment, such as Delaware and Florida, where corporate taxes are reduced, income taxes are eliminated, and become a "Right to Work" state. Third, cut the waste and spending in your state and learn to live within your means. By doing so, businesses and jobs will return, or at least you will have stopped the massive desertions from New York. Sorry, but I cannot help you with the weather. I do not believe palm trees will survive your winters.

Keep the Faith!

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Tim Bryce is a writer and the Managing Director of M&JB Investment Company (M&JB) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:   timbryce.com

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Copyright © 2015 by Tim Bryce. All rights reserved.

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