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Overcast Senators tout tax incentives for small businesses
Even in tough economic times, Chris Brown, owner of Mid-Island Medical Supply in Wantagh, has managed to expand his business from one storefront to three on Wantagh Avenue. With the MTA payroll tax, however, even successful Long Island businesses like Brown's have been hit hard.
Members of the Nassau County State Senate Republican conference say local businesses like Brown's are the backbone of New York's –– and Long Island's –– economy. With that in mind, local senators Dean Skelos, Charles Fuschillo Jr., Carl Marcellino and Kemp Hannon called for a new job creation plan in a news conference on Wednesday, with Brown's store as the backdrop.
Knowing that local business owners have been bit hard by the economy, as well as new taxes like the Metropolitan Transportation Authority's payroll tax, the senators say their plan would provide business owners with needed tax relief while creating new jobs.
The MTA tax requires that all businesses within the authority's coverage area pay 33 cents on every $100 in salaries and wages. At the heart of the job creation plan is the incentive for local businesses to create new jobs without having to worry about salary taxes.
"With the tax savings that we'll be able to see, we'll be able to hire new people," Brown said. "Unfortunately, with what we've had to pay in taxes, with the MTA tax, it's really dragging us down. What we really need is some new stimulation for small business to help us to grow and develop our companies as well."
If passed by the state Legislature and signed by the governor, the plan would reward businesses with a maximum $5,000 three-year tax credit for every new job created. An employer would receive a $1,150 tax credit for a new job paying $30,000.
Ira Reiter, vice president of the Merrick Chamber of Commerce, agreed that the plan would help Long Island businesses like Merrick Dodge, for which he is the commercial manager.
"It will keep more money in for businesses and allow them to hire more and expand more," he said. "Every little bit extra that we have to spend takes away from the every day cost of the business."
