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Zack Hutchins
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January 5, 2005

Governor recommends tax cuts, reduced Medicaid spending
State of the State address also announces major new private investments

Saying tax cuts have helped New York’s economy in the past and can help again, Governor
George Pataki Wednesday proposed a series of tax cuts, including the accelerated phase-out of
tax hikes imposed by the state Legislature in 2003.

In his annual State of the State address Wednesday, the Governor said another key tax-cut proposal, the so-called single-sales factor reform, would be part of a new initiative designed to help struggling Upstate communities. And he proposed reducing the state’s highest-in-the-nation Medicaid spending.

"The best way to foster a job-friendly climate is by relieving the tax burden on all our fellow New Yorkers," the Governor said. "More progress must be made to reduce the tax burden on all New Yorkers. We know tax cuts work. We’ve proven beyond all doubt how cutting taxes creates jobs and prosperity for our fellow New Yorkers. We’ve done it before, now let’s do it again.”

Business Council President Daniel B. Walsh said, "We are heartened to see the Governor's energetic commitment to putting New York back on the path to prosperity. Tax cuts and spending restraint spurred job growth earlier in his administation, and they can give New Yorkers the same benefits again."

Many of the Governor’s tax-cut proposals are part of a proposed iniative called Operation SPUR. SPUR stands for the Strategic Partnership for Upstate Revitalization. These tax-cut proposals include:

“Let this be the year we get it done,” the Governor said. “Let this be the year we stand up for taxpayers once again.”

The Governor also said he would proposal Medicaid reforms that will cut costs and also protect
county property taxpayers.

In his speech, the Governor also announced a number of major private-sector investments.

In his speech, the Governor also: