Senator proposes small business incentives

On Wednesday, State Sen. Charles Fuschillo Jr. announced a new plan to help create jobs for local residents and provide fiscal relief for small business owners.

"Putting people back to work is the best way to help our economy improve. This plan would help create new jobs by giving small businesses financial incentives and reducing their tax burden. With Long Island losing over 44,000 jobs last year alone, this plan is absolutely vital to our economic recovery," said Fuschillo, a Republican from Merrick.

According to the senator, the job creation and tax relief initiative would help local small businesses create jobs by lowering business costs and giving them financial incentives to hire new employees. In addition, the plan would provide incentives for new companies to relocate to New York, bringing additional jobs for local residents.

The plan 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. The credit could increase by as much as an additional $3,000 per job if the new hires were 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. The plan would create a five-year moratorium on any new taxes or fees on small businesses and manufacturers and accelerate 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 would eliminate the corporate franchise tax for small businesses that have fewer than 50 employees and a net income of less than $2 million. Reducing costs would 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. The 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 would improve the state’s overall economic climate. Fuschillo has repeatedly called on Albany to enact a state spending cap. Governor Paterson has also advocated for a state spending cap.

Fuschillo is urging Paterson to adopt the measure.