Congresswoman Nita Lowey (D-Westchester/Rockland) was today joined by Westchester County vaccine and pharmaceutical companies as she called for a reduction in the employer payroll tax and an extension of the reduced employee payroll tax in order to encourage job creation and economic growth.
"Keeping taxes low for millions of working Americans will help to spur economic growth as they use that extra money to purchase goods and services," said Lowey. "Reducing the cost of hiring new workers will make it easier for corporations, organizations, and other employers to create the jobs that our state and nation need."
The vast majority of workers pay a tax of 6.2 percent on wages earned up to $106,800 per year. Their employer pays an equivalent amount for a total of 12.4 percent per worker, which is designated for Social Security.
In December 2010, Congress approved a reduction in the employee-paid portion of the payroll tax to 4.2 percent, but that reduction will expire at the end of 2011, raising taxes for millions of working Americans. The average tax increase for families in New York's 18th Congressional District would be $1,689 per year and the maximum tax increase would be 2,136 per year.
An extension of this employee tax benefit and a reduction in the employer portion of the payroll tax would encourage job creation and promote economic growth. Lowey also highlighted the innovative work that local companies TechnoVax, Inc. and Acorda Therapeutics are conducting to fight disease and improve wellness.
"TechnoVax, like most small biotech companies today, relies on Federal research grants and incentives," said Jose Galarza, CEO, TechnoVax, Inc. "In return the largest part of our resources is re-invested into hiring educated and well trained scientists. Every dollar we can stretch allows us to increase our workforce, focus on advancing our innovative vaccines and keep cutting edges technologies being developed in the USA."
"Biotechnology companies develop innovative therapies that treat previously untreatable diseases and bring enormous benefits to millions of patients in need," said Ron Cohen, M.D., Acorda's president and chief executive officer. "In doing so, they ease the personal and economic burdens of illness while creating new, high-paying jobs. One of the most important investments Federal, state and local governments can make is in partnering with biotechnology companies to invest in research, rationalize tax burdens and expedite regulatory processes, so that this key industry can remain an engine of employment and economic growth. "