State Senate Looks To Cap Spending Growth
Albany, NY (WIBX) – The state Senate has approved a bill aimed at capping state spending and making it more difficult to increase taxes.
The Job Creation and Taxpayer Protection Act of 2011 would also offer incentives for businesses to create new jobs. Each new position would provide the business with a $5,000 tax credit for three-years. The credit could grow to $8,000 is the person hired to fill the position was previously on unemployment insurace.
The state spending cap could vary from year-to-year, but would bar the state from increasing spending more than 2-percent. If 120% of the Consumer Price Index (rate of inflation) is lower than 2-percent, spending would be capped at that rate.
Rather than a simple majority, this legislation calls for a ‘super majority’ of two-thirds in order to pass any tax increase.
Republican Senators James Seward and Joseph Griffo voted for the measure.
It is not clear if the bill will make it to the Assembly floor for a vote.