Schumer bill gives businesses tax relief

Saying he wants to accelerate the economic recovery, Sen. Charles Schumer Wednesday unveiled legislation providing tax breaks to companies that hire workers or purchase new equipment this year.

Schumer (D-N.Y.) said his proposals would help small businesses, though they would apply to all regardless of workforce size.

He said he was responding to suggestions received on his recent tours of companies, including Telephonics, the Farmingdale-based manufacturer of communications equipment used by the military and others.

Schumer said he doesn't yet have a sponsor for the legislation in the House of Representatives, where Republicans hold sway. He also said his proposals, because they tie federal tax incentives to job creation, are better than a rival GOP bill.

"Companies that make things are poised to grow, and the federal government should help them," Schumer told reporters in a telephone conference. "The economy is recovering, but we're not there yet," he said, referring to commercial activity in New York State.

Under the proposed Small Business Jobs and Tax Relief Act of 2012, companies would receive a 10 percent tax credit on higher payroll costs this year compared with 2011. The credit would apply to hiring and wage raises for current staff.

Schumer estimated businesses in Nassau County would save an average of $5,377 per employee and those in Suffolk, $5,096. The total savings could not exceed $500,000.

Companies that invest in machinery could write off the full value on their 2012 taxes instead of over several years.

"For every $1 of tax cuts, we receive $9 in GDP growth," Schumer said, referring to the sum of all goods and services produced nationwide.