The Assembly Republican Steering Committee joined businesses and industry organizations in Hicksville on April 11 to discuss the need for low-cost health insurance, lower energy costs and corporate tax reductions for small businesses.

"The rising costs of health insurance and energy combined with ever-expanding corporate taxes are crippling Long Island businesses," said Assemblyman Rob Walker (15th A.D. - Hicksville), Steering Committee vice chair. "We need to have strong, vibrant small businesses to ensure that our communities continue to be great places to live, work and raise families. I am proud to host today's forum, and I look forward to using the ideas generated here to improve the business climate in my district and across the state."

Among the small business owners and industry associations in attendance were representatives from Clare Rose Inc., Kozy Shack, the Land Tek Group Inc, Uncle Harry's Trophies, Plaques & Gifts, the Empire State Carpenters Union, the Long Island Contractors Association and the Long Island Partnership.

"The recent reforms to New York's outdated workers' compensation system are a good first step to providing cost savings to Long Island businesses, but much more needs to be done," said Assemblyman David G. McDonough (19th A.D. - Merrick). "The ideas we heard today from Long Island business owners will help stimulate our local economy and enable businesses to thrive."

Assemblyman Tom McKevitt (17th A.D. - East Meadow), a member of the Assembly Small Business Committee, said, "Small businesses in my district are forced to deal with bureaucracy from Albany and ever-increasing taxes and fees as they struggle to pay their employees and still meet their bottom line. I am hopeful that today's forum will inspire common-sense reforms that will lessen the high cost of doing business on Long Island."

According to Long Island Partnership President Michael Watt, "The Long Island Partnership commends the Assembly Republican Steering Committee for convening this roundtable discussion regarding New York State's business climate and looks forward to participating. There is much to be said about the value of exchanging ideas and experiences in a forum where they can then be put to good use in the form of helpful, pro-business legislation."

Marc Herbst, executive director of the Long Island Contractors Association and former assemblyman, stated that the purpose of the forum for Long Island Contractors Association, and its membership, was "to provide our elected officials with the problems that we confront on a daily basis and some of the solutions that will allow our small business owners to continue to work and conduct business here on Long Island. Our membership is dependent on New York state providing the incentives and economic environment, not only for contractors, but for all small businesses to thrive, grow, expand and want to stay in New York."

Small businesses are the economic engine that runs New York State, said Nassau Council Chambers of Commerce President Richard M. Bivone. "To maintain a viable workforce we need the ability to compete with other locations to prevent businesses from closing. Reduced taxes, lower health insurance cost and skilled labor are an important part of maintaining these businesses. Reforms are needed to continue positive growth for economic development," Bivone said.

As part of their Road to Reform plan, Assembly Republicans are sponsoring legislation to make it easier for small businesses to thrive in New York. These proposals include increasing main street revitalization efforts, restoring the 1 percent lower tax rate for small businesses and providing health insurance tax credits. Additional measures would establish a small business training tax credit, reduce energy taxes and require prompt payments of state contracts.

The 2006-2007 budget provides $150 million worth of targeted business tax relief in the form of a rate cut for all corporations, banks and insurance companies, and targeted relief for manufacturers and high technology companies.

The tax cut for manufacturers reduces two critical rates. First, the overall tax on manufacturing income is lowered from 7.5 percent to 6.5 percent. Second, the alternative minimum tax, which has a disproportionate impact on manufacturers, is lowered from 2.5 percent to 1.5 percent. The value of this reduction is $75 million. The general corporation tax is a broad-based reduction for all corporations and high technology companies from 7.5 percent to 7.1 percent.

Assembly Republicans applaud this first step toward restoring a business-friendly environment in New York State, and also support the workers' compensation reform enacted earlier this year. However, more must be done to promote a business climate where entrepreneurs are encouraged to create opportunities and jobs, which will ensure future prosperity. The conference will maintain the pressure to reduce taxes and bureaucratic red tape that too often kills business in the state.

"Excessive health insurance and energy prices, burdensome government regulations and high taxes are increasing the cost of doing business in New York," said Assemblyman Bill Reilich (134th A.D. - Greece), who is chairman of both the Steering Committee and the Assembly Republican Small Business Task Force. "The experts we spoke with today gave us valuable feedback on how New York lawmakers can help our state's small businesses prosper."

According to Assembly Republican Leader James Tedisco (110th A.D. - Schenectady-Saratoga), "The heart of New York's economy is small business. Unfortunately, crippling taxes and overregulation are killing the industry in our state. The Assembly Republican Steering Committee is traveling the state, talking to business owners to find ways to remove these obstacles and help small businesses flourish."

The Assembly Republican Steering Committee is hosting several forums in 2007. For more information, please call the Assembly Republican Office of Public Affairs at (518) 455-5073.