A discussion about tax reform has started in Albany which I am glad to see take shape. Members of the State Senate Finance Committee have been holding hearings and asking the question: how do we improve our state’s tax policy? They have begun to gather testimony from business groups and other experts in tax policy in reaction to rankings that consistently rank New York’s tax burden as one of the highest in the country.

The fact that New York state has high taxes is hardly a surprise to anyone living in the state. According the Tax Foundation, a Washington think tank, there are several tax categories in which New York ranks either the highest or close to the top. Perhaps what illustrates this best is that New York’s Tax Freedom Day is May 1 — the second latest in the country. Tax Freedom Day illustrates how long citizens of a state must work into the year before they have earned enough money to pay all federal, state, and local taxes for the year. If this increases by two more months, it will take New Yorkers, on average, half the year to earn enough to pay their taxes.

Unfortunately, it does not end there. New York ranks number three in the nation as far as our state and local tax burden per capita. Our state and local sales tax rates rank seventh highest in the nation. We also have the highest gasoline tax rate and the third-highest state and local cell-phone tax rate. Perhaps if New York limited itself to just collecting revenue from a few sources like income tax and sales tax, these high rates wouldn’t be too bad. But on top of these high rates, New York also has, among others, a highway-use tax, motor-vehicle fees, cigarette and tobacco taxes, alcoholic-beverage tax, corporate-franchise tax, bank tax, insurance tax, utility tax, and the estate and gift tax.

From a political perspective, it is unlikely that one can wave a magic wand and make these taxes simply go away. However, if New York ever wants to again be the economic capital of the country, we must begin chipping away at our tremendous tax burden. As a member of the Assembly Ways and Means committee, I sponsor several pieces of legislation that will do just that. Individually, these bills won’t cause a severe shock to our state’s habit of taxing and spending (and therefore may be the most feasible to get passed), but on the aggregate they will go a long way in relieving the tax burden on taxpayers and improving New York’s business climate. The following are a few of the bills that I am sponsoring:

§ Let’s remove 18-A. This is an energy tax on utilities that is ultimately passed down to families and businesses. This is bad state policy and should have expired long before now, as it keeps us uncompetitive with other states for new businesses. (A.382)

§ Eliminate the Wage Theft Prevention Act. This is a costly and unnecessary mandate that cuts into businesses’ production and their bottom line. The name, Wage Theft Protection, sounds well-meaning but the law is duplicative and only serves to create a burden on employers who were already following the law. (A7756)

§ Encourage new business startups with the “BizBoom Program Act.” (A.4567) This would cut application fees for new businesses by 50 percent for the first year, and eliminate business income taxes for the first year, as well as reduce income tax rates for the second and third year.

§ Eliminate burdensome regulations by creating the “Division of Regulatory Review & Economic Growth” (or D-RREG). This would be led by a commissioner who has a fixed term, to review and make binding recommendations for the elimination of burdensome regulations and permit requirements. In talking with constituents and business owners, they often mention “red tape,” which can limit growth. (A.5044)

§ Work-NY, (A.4565), would reduce the state tax rate for all manufacturers by 50 percent. This legislation also would provide a personal income tax credit for small businesses with incomes below $250,000. Work-NY also would create a tax credit for new jobs. Each business that hires an unemployed person or a veteran also would receive an additional tax credit.

These pieces of legislation are just a start. My job is to convince my colleagues that we cannot continue with the status quo. We need to reverse New York’s high tax ways if we ever want to improve our economy.

William (Will) A. Barclay is the Republican representative of the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County. Contact him at barclaw@assembly.state.ny.us, or (315) 598-5185.

For more than a decade, businesses across the world have been benefitting from “hyper-globalization” — the convergence of trade and culture across many nations — to deliver improved and more affordable products to their customer base and grow their market.

This technologically driven shrinking of the globe has been a tremendous boon to the economy throughout the recession, and it’s a trend that is not likely to reverse any time soon. It has also been a great equalizer. Today, businesses of any size in any location can be international players. For local businesses, this is great news. International trade can help bolster your firm’s financial health by extending your reach and increasing profitability — provided that you can successfully navigate the complexities of trade agreements, foreign exchange, and compliance.

The good news is this. When it comes to becoming an international player, you don’t have to go about it alone. Government agencies — from the U.S. Small Business Administration to the U.S. Trade Information Center — can work with you to find trade partners, share marketing expertise, offer technical assistance, and provide counseling. Banks can assist you with working capital, loan guarantees, collection, and currency management. The goal is to open the door to all the opportunities offered by international trade, while keeping the risk as low as possible.

More specifically, banks figure prominently in international trade because competing in the global market requires international expertise. Exchange rates between currencies shift continually, but that need not threaten your overseas sales. Using forward contracts, a bank can lock in an agreed-upon rate for future delivery of your products, reducing your risk from currency fluctuation. For example, if you’re selling in Mexico and the peso rises in value against the dollar, or you’re selling in Canada and its dollar (often called the loonie) rises against our dollar, you’ll still receive the payment you expected for your product.

A letter of credit specifies all documents required for the transaction and outlines the responsibilities of both the buyer and the seller. It’s a great way to protect your business by structuring transactions. For instance, if you need to import a part from Germany to manufacture your product, your bank could issue a letter of credit to the exporter in Germany, guaranteeing to pay the exporter through its German bank if the exporter fulfills the terms and conditions of the letter of credit. This protects the exporter by ensuring your payment. But if the exporter fails to deliver on time, then the exporter forfeits the guarantee of payment, which protects you, the importer, while still giving you the opportunity to accept late delivery and renegotiate more favorable terms for future deals.

Documentary collection transactions are between the buyer’s and seller’s banks. The seller sends the transaction documents to its own bank, and the seller’s bank sends the documents to the buyer’s bank. The buyer’s bank forwards the payment to the seller’s bank and delivers the transaction documents to the buyer.

However, if the buyer does not pay, the buyer’s bank sends the documents back to the seller’s bank, and the seller can go to the port in the buyer’s country and reclaim the goods. This protects your interest in the product. If the buyer cannot make payment, you retain rights to your product, because the buyer cannot claim the shipment of your product without the necessary documents.

Cash advance is another settlement method sometimes used in international trade. You generally want to avoid it when importing parts or products, in order to preserve working capital, but leverage it when exporting and working with a buyer with which you have never dealt. Your bank can also direct you to insurance brokers who can provide credit insurance to you, to cover the risk of nonpayment by your overseas buyer.

For advice and support services to help you sell your products abroad, consult a banker who deals regularly with foreign exchange and import-export financing. These experts collect valuable data for penetrating foreign markets or for shopping in them. They can advise you on country risk and buyer risk, providing trends on how long buyers in a particular country or industry might take to pay, or assessing the risk that a particular trading partner might not pay at all because of the local currency restrictions.

For importers, they can profile the risks of dealing with potential sellers overseas and provide expert assessments of foreign trade risks, which can help you price your products realistically — country by country and buyer to buyer. They can also guide you to the most appropriate risk-mitigation tools for your needs.

Some international banking services are relatively simple, such as establishing an account with your bank in the local currency of your trading partner. Other services are not so simple but can be a great aid. The SWIFT system, for example, speeds transactions electronically among banks that are part of global networks. This network allows banks like KeyBank to work with more than 700 trusted counterparty banks around the world. That’s why it’s so important to consult with the right team of advisers and to lean on the right resources when pursuing international trade opportunities. Through collaboration and trust, you can turn the complex world of global trade into a manageable and meaningful business opportunity.

Stephen D. (Steve) Fournier is president of KeyBank’s Central New York market. Contact him at (315) 470-5096 or email: Stephen_Fournier@keybank.com.