Photo caption: Senator Fuschillo explains how the new job creation plan will help small businesses put people back to work. He is joined by (l-r) Senator Marcellino, Senator Skelos, Senator Hannon, Wantagh Chamber of Commerce President Chris Brown, and other local small business owners.
With over 102,000 Long Islanders currently unemployed and many businesses closing their doors, local small business owners today joined with Senator Charles J. Fuschillo, Jr. (R-Merrick), Senator Dean G. Skelos (R-Rockville Centre), Senator Carl Marcellino (R-Syosset), and Senator Kemp Hannon (R-Garden City) in calling on Albany to pass a new plan to help create jobs for local residents and provide desperately needed relief for small business owners.
The plan, which is being proposed by Senator Skelos, Senator Fuschillo, Senator Marcellino, Senator Hannon, and the other members of the Senate’s Republican conference, would provide recurring tax credits for businesses that create new jobs and provide business tax relief so that small businesses can grow their operations.
“This plan will get people working,” said Senator Skelos, the Senate’s Republican Leader. “It will give businesses small and large real incentives to create jobs and get our economy moving in the right direction. Despite spending billions of dollars in federal stimulus monies, this state is hemorrhaging jobs. Obviously, what this state is doing hasn’t been working.”
“The best way to help our economy improve is by putting people back to work. Providing incentives for small businesses to hire new employees and helping them grow by lowering their tax burden will create new jobs for local residents and get our economy back on track. Governor Paterson and our colleagues in the legislature should join us in supporting this job creation plan” said Senator Fuschillo.
“It is critically important to pass a comprehensive plan that will improve the business climate in New York State and to take all steps possible to promote growth and boost job creation. Small businesses are the life blood of our State’s economy and this bill will help small businesses flourish,” said Senator Marcellino.
“The loss of jobs across the state is a top priority for New Yorkers, and thus, the creation of jobs must be a top priority on our legislative agenda this year. This important initiative will put New Yorkers back to work by providing both large and small businesses real incentives to create jobs and get our state’s economy back on track. The passage of this plan is crucial for the people of New York,” said Senator Hannon.
The Senators noted that job creation needs to be a priority on Long Island. According to the New York State Department of Labor, the number of people employed on Long Island dropped by 32,500 between December 2009 and December 2008. During that same time period, the region’s unemployment rate rose from 5.8 percent to 7 percent.
The plan being sponsored by the Senators would:
* Provide Tax Credits for Creating New Jobs: Give New York employers a recurring three-year tax credit of up to $5,000 for every new job created. Credit would be equal to amount of tax withholding for each new job, up to a maximum of $5,000. Credit would apply only to new jobs that expand total payroll.
As an example, a new job paying $30,000 would provide an employer with a tax credit of about $1,150. A job paying $50,000 would provide a $2,500 tax credit.
The credit could grow by as much as an additional $3,000 per job if the new hires are taken from the ranks of the unemployed who are collecting state unemployment funds. This incentive would help reduce unemployment costs to the state, saving taxpayers money.
* Reduce Taxes on Small Businesses: Lower the cost of doing business in New York State by providing business tax relief. Plan would create a five year moratorium on any new taxes or fees on small businesses and manufacturers and accelerates the phase-out of the personal income tax increase on small businesses that is scheduled to expire at the end of next year. In addition, the plan eliminates the corporate franchise tax for small businesses which have 50 employees or less and a net income of less than $2 million. Reducing costs will help small businesses grow and create jobs for local residents.
* Cut the Red Tape: To help reduce bureaucratic red tape on small businesses, the plan would place a moratorium on new business taxes, fees, and regulations from state agencies. Plan would also create a new commission to identify and make recommendations about ways to streamline and/or eliminate the most costly and counter-productive regulations.
* Enact a Cap on State Spending: The plan would impose a constitutional cap on state spending to help ensure the state lives within its fiscal means, which will improve the state’s overall economic climate. Senators Skelos, Fuschillo, Marcellino, and Hannon have repeatedly called on Albany to enact a state spending cap. Governor Paterson has also advocated for a state spending cap.
Wantagh Chamber of Commerce President Chris Brown and several other small business owners from the Wantagh community joined with Senators Skelos, Fuschillo, Marcellino, and Hannon in supporting the plan and calling on Albany to take action.
Mr. Brown, owner of Mid-Island Medical Supply, said “Small business owners all across Long Island are suffering from a bad economy and a tremendous tax burden. Especially damaging is the MTA payroll tax., which discourages job creation because it raises taxes on business who hire new employees. These Senators understand that the best way to help create jobs and grow small businesses is by rewarding us for hiring new employees and lowering our tax burden. I thank them for proposing this plan and urge Albany to pass it.”