What's New

Zack Hutchins
Director of Communications

January 25, 1999 

Governor Pataki calls for business tax cuts to create jobs
His budget would cut bank, insurance taxes and AMT, while restructuring utility tax

Governor Pataki announced his proposed budget will include more than $350 million in new business tax cuts, including several of The Business Council's top priorities for tax reform in the coming year.

"Our policies of cutting taxes, reforming workers' compensation and eliminating unnecessary regulations have directly led to the creation of more than 419,000 new, private-sector jobs," the Governor said. "These new tax cuts will build on this tremendous record of growth and opportunity."

Major elements of his new proposals would:

The Governor's plan would also affect farm property taxes; minimum taxes on petroleum businesses, aviation fuel and small agricultural cooperatives; and the real estate transfer tax.

Senate Majority Leader Joseph L. Bruno, who has proposed a major package of new tax cuts, praised the Governor's announcement and noted similarities with the Senate plan.

Like the Governor's proposals, the Senate agenda includes reducing bank and insurance taxes, and reducing the gross receipts tax on utility customers.

Assembly Speaker Sheldon Silver has said his conference will also propose business tax cuts aimed at stimulating job growth.

Governor Pataki has also proposed reducing personal income taxes for lower- and middle-income workers, as well as thousands of small businesses. He noted that businesses and other taxpayers will also benefit from tax cuts, worth hundreds of millions of dollars, enacted in recent years and taking effect in the coming year.

Those include reduction in the corporate franchise tax; the reduction in the AMT; further reduction in the gross receipts tax on utility bills; and elimination of New York's added estate tax.

The Governor was also expected to announce today an additional tax proposal that would create incentives for business investment in cities.