Published: March 11, 2009 12:00 am      

Small firms blast taxes

The state must stop spending and imposing new taxes and fees, a local chamber of commerce official said Tuesday after Small Business Day in Albany.

Mary Beth Silano, executive director of the Delaware County Chamber of Commerce, said Gov. David Paterson's budget proposal and the Legislature are ``killing the business community with all the taxes and fees.''

``They're out of control in Albany _ totally out of control,'' Silano said in a telephone interview. ``It's not looking pretty.''

Silano was among chamber officials and business owners who came to Albany on Tuesday to find ways to cut the $4 billion in new taxes proposed in the governor's budget. Small Business Day is an annual event designed to give small-business operators an opportunity to discuss priority issues with key lawmakers.

The event was sponsored by the Business Council of New York State with the National Federation of Independent Business, the Chamber Alliance of New York State and the New York Main Street Small Business Coalition.

Last week, the Business Council said that the governor's plan is ``a recipe for crushing our chances for economic recovery.''

``Huge tax increases levied in the middle of this profound economic crisis will have a chilling effect on job growth and consumer confidence in New York _ just when we need to move in the other direction," Kenneth Adams, Business Council president and chief executive officer, said in a media release.

Taxes under consideration are a personal income tax increase of $6 billion and $4 billion in new taxes and fees proposed by Gov. David Paterson, Adams said. The Legislature is considering Paterson's proposal, with an April 1 state deadline for a final budget. Senate Republicans have outlined a plan to balance the budget without tax increases and economic development tools to create jobs _ ``a much better path for New York than more spending and higher taxes," Adamas said.

The Chenango County Chamber of Commerce and the Cooperstown Chamber of Commerce didn't send representatives to Small Business Day, but the organizations' officials said they are tapped into advocacy efforts to oppose greater taxes and fees.

``We've been working with the Otsego County Chamber. It's a collaborative effort,'' said Susan O'Handley, executive director of the Cooperstown Chamber. ``Reducing spending _ everybody's doing it. The state needs to do it, too.''

Silano said an priority is targeting the governor's proposed $876 million in taxes on health care and health insurance premiums. The taxes would take money from businesses, she said, as well as from employees.

``Health care is expensive to begin with,'' Silano said.

The health coverage tax is the third-largest revenue generator for the state, making changes ``not look too promising,'' she said.

Sole proprietors and other business representatives should write to their state lawmakers about their concerns, she said.

Between now and April 1, businesses and their representatives must continue the message that more taxes cannot be tolerated, said Rob Robinson, president and chief executive officer of the Otsego County Chamber.

Money that the state takes in taxes means less money for businesses to meet payroll or invest into their operations, he said, and there are business owners that wonder on Thursday night if they have enough money in their bank accounts to meet Friday's payroll.

The message about business conditions and taxes was clearly delivered Tuesday to state lawmakers, who seemed receptive, he said after Tuesday's meetings.

``I hope they do do a commonsense budget by April 1,'' Robinson said. ``We can't afford to be taxed any further.''