Rebate checks are welcome, but taxes are still too high
JAMES P. HAYES New York State Assembly

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but taxes are hile the STAR rebate checks that most homeowners and seniors received in the mail this past week are most welcome, our state is headed in the wrong direction - and will continue in the wrong direction - until major tax reforms are enacted.

We pay the highest state and local taxes in the nation, 53 percent above the national average. According to a 2006 report from the Tax Foundation, New York is dead last on the list of 50 states ranked by overall state tax burdens, complexity and compliance costs.

To me, it's a direct equation: high taxes kill jobs.

Every day it seems we read about another businesses closing and moving out of Western New York. Our neighbors bring home heartbreaking news about the loss of jobs, health insurance and retirement benefits.

As major local manufacturers like Delphi Corp. and Ford Motor Co. cut hundreds of jobs through employee buyout programs, more than 30 percent of our young people have left the state.

And while our state's economy depends in large part upon the health of its small businesses (nearly 98 percent of all businesses in New York are small businesses, and almost 52 percent of working New Yorkers are employed by small businesses) Albany continues to impose crippling mandates and tax-and-fee burdens on small businesses, slowing their ability as job creators and economic engines.

I'm committed to fighting the tax, spend and borrow policies that are driving families and jobs out of our region.

Here are a few simple things Albany could do to start turning things around:

. Cut the top state income tax rate for families making more than $40,000 a year. Families earning $40,000 a year pay the same top income tax rate as those who make $400,000 pay. That's wrong.

. Control spending. Our state and local debt amounts to $11,377 for every resident, the third-heaviest debt burden in the nation. The all

too common practice known as "backdoor borrowing" - debt issued by public authorities - must end. No new debt without voter approval.

. Create a 15 percent tax credit for small businesses that pay employee health benefits. Nearly 952 percent of working New Yorkers are employed by small businesses. Sadly, of the 46 million Americans with no health insurance, more than half (27 million) are small-business owners, their employees and dependents.

Every day, small businesses are being forced to decide between paying double-digit premium increases and dropping coverage entirely.

A misguided proposal to tax companies that don't pay health insurance benefits was held back during this year's session - but will undoubtedly resurface next year.

Instead of taxing employers to pay for benefits, why not give them an incentive to help both the employee and the employer?

Fighting for tax relief and reforming the way Albany does business is my number one priority as your state representative. If you have questions or concerns about this or any other state matter, please call me at my district office at 634-1895 or e-mail hayesj@assembly.state.ny.us.