Collins pitches Revival Act during Batavia visit
U.S. Rep. Chris Collins visited Batavia Thursday to promote legislation to help small businesses in their first year of operation.
Collins’ proposed Main Street Revival Act will allow small companies to defer payment of the first 12 months of payroll taxes, then pay off the owed amount in equal installments over a four-year period, Collins said.
“Cash is king,” he said.
The amount of start-up money a new company needs is usually underestimated for expenses such as taxes on payroll for Social Security and Medicare, which is 7.65 percent. The option to delay payment of those taxes will allow a company to use those funds for other purposes such as creation of a website or purchasing equipment, Collins said.
“The cost to the taxpayer is zero,” he said.
Collins, R-Clarence, made his comments in front of a vacant storefront at 35 Jackson St. in downtown Batavia. He gestured toward the building.
“If you’re going to start it, start it right here,” he said of his proposed law.
Batavia is one of several communities in Collins’ 27th District designated as economically distressed by the federal Small Business Administration.
The Historically Underutilized Business Zones (HUB Zones) also include all or parts of Depew, Lancaster, Lockport, Medina and Livingston County. The SBA used data on unemployment and employment from the 2010 federal census as criteria to determine HUB Zones.
Collins’ Main Street Revival Act would apply only to businesses that expect to hire 25 or fewer employees during the year it asks for the payroll tax deferral.
Collins stated in a news release the inspiration for the bill was his talks with local merchants in his district about ways the government can help them get off the ground.
Rep. Eric Swalwell, D-California, is co-sponsor of the proposed legislation. H.R. bill 952 was introduced last week in the House.
The measure has not yet been assigned to a committee. The next step is for Collins and Swalwell to recruit other co-sponsors before asking House leaders to push for a vote on the proposal.