GOP Senate Unveils Small Biz Aid Plan
BY JOHN TOSCANO

Senator Serphin Maltese (R- C, Middle Village), left, declared, "Small businesses are essential components of our communities and our city and state's economy is dependent upon their success...Senator Frank Padavan (R- C, Bellerose), right, also supported the legislation, saying, "Small business is, literally, what keeps New Yorkers employed and these small businesses help to make up our diverse and rich cultural environment.

Aiming to remove some of the factors that prevent small businesses from growing, state senate Republicans offered a plan last week that would give them property tax relief and assistance for those that pay personal income tax, and tax credits to cover their energy costs.

The legislative package would provide $490 million in assistance in the first year and almost $1.3 billion after three years.

Senator Serphin Maltese (R- C, Middle Village), chair of the Cities Committee, declared, "Small businesses are essential components of our communities and our city and state's economy is dependent upon their success. It is imperative that we create an economic atmosphere that will allow them to prosper and thrive.

Maltese added that the proposed legislation "represents pro-growth, pro-job policies that will lower taxes, provide new economic incentives, and streamline red tape bureaucracy and will make it easier for young people and families to stay in New York and build a future here."

Senator Frank Padavan (R- C, Bellerose) also supported the legislation, saying, "Small business is, literally, what keeps New Yorkers employed and these small businesses help to make up our diverse and rich cultural environment. My colleagues and I in the senate realize this and have introduced this initiative to lower taxes and help ease the burden that small business owners face. Through a series of tax cuts, breaks and incentives we'll see our businesses begin to flourish both here in Queens and throughout New York."

Specifically, the package of bills: +Eliminates the income tax and corporate franchise tax on manufacturers, regardless of size, providing $550 million in tax relief.

+Provides a $350 million refundable tax credit for energy cost relief, to help 386,000 small businesses that employ 20 people or less.

+Reduces the corporate franchise tax rates from 7.5 percent to 6.85 percent, saving businesses $150 million.

+Creates a small business STAR program to provide direct rebate checks, averaging $700 to small businesses that pay school taxes and employ less than 20 people, providing $150 million in property tax relief.

+Expands incentives to encourage emerging technology companies that do research and development in New York to manufacture their products in New York as well.

+Grants $20 million in relief through reforms of the corporate franchise tax.

+Gives relief from red tape and bureaucracy by simplifying and reducing paperwork, eliminating unnecessary or burdensome fees and permits and creating a onestop shopping information center to help someone start or expand a small business.

Maltese said a recent Business Council study shows that corporate income taxes in New York State are 133 percent above the national average.

Senate Majority Leader Joseph Bruno said the small business aid plan is the Republicans' top priority. He noted that two-thirds of working New Yorkers are employed by small businesses and that 90 percent of new jobs are created by small businesses.

It is expected that Governor Eliot Spitzer and the Democratic majority in the Assembly will also weigh in with a small business assistance plan.

During the gubernatorial election campaign and in recent speeches, Spitzer has promised he would make a major effort to try to develop the upstate economy. This would include small business assistance.