New York State Spent Millions On Program For Startups That Created 76 Jobs

Nerval's Lobster writes Last year, the New York state government launched Start-Up NY, a program designed to boost employment by creating tax-free zones for technology and manufacturing firms that partner with academic institutions. Things didn't go quite as planned. In theory, those tax-free zones on university campuses would give companies access to the best young talent and cutting-edge research, but only a few firms are actually taking the bait: According to a report from the state's Department of Economic Development, the program only created 76 jobs last year, despite spending millions of dollars on advertising and other costs. If that wasn't eyebrow-raising enough, the companies involved in the program have only invested a collective $1.7 million so far. The low numbers didn't stop some state officials from defending the initiative. "Given the program was only up and running for basically one quarter of a year," Andrew Kennedy, a senior economic development aide to Governor Cuomo, told Capital New York, "I think 80 jobs is a good number that we can stand behind."

Comments

Too early for criticism.

[LionKimbro]

Wait a second -- this program has only been running for one quarter of a year?

76 jobs doesn't sound that bad, on such a short time frame.

Sounds like a pre-mature judgement.

Re:Too early for criticism.

[thaylin]

It is 53 million, not 1.7m. The other poster got his number mixed up. The "only invested a collective $1.7 million so far" part was what the companies invested, not the state.

Re:Too early for criticism.

[ShanghaiBill]

It's trying to bring business back to NY and make NY more business friendly

Wouldn't it be better to do things that help all business, like lower taxes and improve infrastructure, rather than spending tax dollars on subsidies and advertising? This sort of spending is just a race to the bottom, as other states ramp up their own subsides. Saying it is justified because of the 80 jobs is silly, because many, if not all, of those jobs would have likely been created with or without the subsidies. Maybe they could send a few million to convince an economist to move to NY, and explain the Broken Window Fallacy to the politicians.

Re:Too early for criticism.

[ShakaUVM]

Well, it's two things, really.

1) Yeah, they want to get a tech nucleus thing going (which does actually work in some places, if done right) and are going about it in a really awkward fashion

2) They realize that the absurdly high taxes in New York are driving businesses away, and so they're giving a temporary tax break to out of town corporations to move in. The trouble is, the turkeys can see the farmer with the shotgun at the end of the line, and aren't buying it. Who would want to grow a business when you know you'll be taxed heavily after becoming successful? You might as well live here in the People's Republic of California where the weather is nicer.

Re:How would you promote job growth

[FlyHelicopters]

You could modify the tax code such that wealthy people and corporations have to pay their fair share of taxes.

What exactly... is "their fair share"?

I keep hearing people say that without defining what that really is.

Did you know the wealthy already pay most of the taxes? How much more would *you* like them to pay?

No, the program didn't fail

[Vermonter]

"Last year, the New York state government launched Start-Up NY, a program designed to boost employment by creating tax-free zones for technology and manufacturing firms that partner with academic institutions."

See, this is what you are supposed to think, but here is how the truth of the matter reads:

"Last year, the New York state government launched Start-Up NY, a program that allows state politicians to give tax money to their buddies while having the appearance that they care about jobs and the general public."

Re:How would you promote job growth

[SJHillman]

Their fair share is obviously whatever things cost and I don't feel like paying for myself.

Re:How would you promote job growth

[__aaclcg7560]

People with EARNED INCOME pay the highest tax rates. Ever wonder why Steve Jobs and other CEO's take a $1 salary? They don't want to pay taxes on EARNED INCOME. Meanwhile, they pay lower taxes on PORTFOLIO INCOME (i.e., stocks and bonds) and PASSIVE INCOME (i.e., real estate). If you don't want to pay your fair share of taxes, stop working for EARNED INCOME.

Re:How would you promote job growth

[Archangel Michael]

"their fair share" is nebulous on purpose, because if they actually specified, then it could be argued against. By keeping it undefined, there is no argument that can be made. The people making that argument win by default, because you can't argue against it.

If I were in a debate, and someone used "their fair share" as an argument, I would ask them what they define it as. If they refused, I would simple toss out the argument as meaningless emotionalism. It would basically say it is like arguing "You should love your wife more". Any answer to that argument would indicate that he doesn't love his wife ... at all (or husband or whomever).

But it works in politics because nobody ever asks to define "fair share". It never happens.

Re:How would you promote job growth

[nobuddy]

Easy. The cost of maintaining a country is based on the GDP. If the calculated budget is $100, and you hold 12% of the GDP, your fair share is $12. If someone else holds .01% of the GDP, they owe $.01.

Fair share is not every citizen pays the same. This is no a socialist economy where everyone contributes the same to get the same benefits. Some people hold far more than others, so their fair share is much higher. They also reap far more of the benefits of those taxes. A man that owns 10,000 trucks in a trucking company gets a hell of a lot more benefit than the guy that rides the bus across town to his job at McDonald's.

Re: How would you promote job growth

[nobuddy]

Bullshit. H1b visas exist because companies want low paid captive workers. No other reason.

Re: How would you promote job growth

[Holi]

H-1B Visa workers aren't picking fruit, they are taking jobs that American's want and are willing to do. But why I am replying to an AC troll is beyond me.

This is nothing. Think lik multi trillion dollars

[140Mandak262Jamuna]

Around the time Dubya took office, we had a surplus and the debt was being repaid and was going down. Then he cut taxes, income taxes, inheritance taxes, all kinds of taxes and promised millions of jobs and prosperity for all. All the money ended up with his cronies, and the economy lost millions of jobs and we came to the brink of total financial collapse. In fact all the trickle down economics and tax-cut politics are simply means to transfer wealth to the rich, keep the middle class despo enough to accept abysmal wages and working conditions. All in the names of "jobs jobs jobs" and "job creators".

All the tax-cuts since the Reagan administration actually creation millions of jobs and explosive economic growth, in China, Korea, Japan, Taiwan, India, Indonesia... The rich took all the tax cuts, shafted America and invested them all abroad. All our economic woes can be traced to middle class naively believing the Republicans promises of wealth and prosperity by giving tax cuts to the rich.