SEPTEMBER 2006

Faso calls for tax cuts as Spitzer suggests reforming workers' comp
By TOM PRECIOUS
News Albany Bureau
9/22/2006

BOLTON LANDING - The state's gubernatorial nominees presented dueling business-friendly plans to corporate leaders Thursday, with John J. Faso, the Republican candidate, calling for a 25 percent income tax cut and Eliot L. Spitzer, his Democratic opponent, providing some details on a plan to reduce soaring workers' compensation costs.

"It is time to address our tax burden - the worst in the nation by many indicators," Faso, a former assemblyman, said in unveiling a $7.5 billion plan that would eliminate state income taxes for married couples making less than $50,000 and reduce them for higher wage earners.

Faso also would end the state tax on dividends and capital gains, which would save taxpayers $3.5 billion annually when phased in over four years.

"If we want to compete in the global economy and revitalize upstate and other communities around this state, we need to do this," Faso said.

Spitzer, the front-runner who previously unveiled a $6 billion proposed property tax cut, said he would consider reforming the way the workers' compensation system pays workers for the rest of their lives if they become partially disabled while on the job.

The so-called permanent partial disability provision accounts for less than 12 percent of worker claims but 75 percent of all costs of the entire system - the most expensive in the nation. For years, businesses have branded the system the major obstacle to upstate recovery.

Spitzer, the state's attorney general, offered no details, but said some limit should apply to how long workers can receive a permanent partial disability benefit, which unions have supported over the years. To win union support for an overall reform of the system, Spitzer also called for an increase in benefits. The $400 top weekly benefit is the nation's lowest.

"But I want to be clear that the end result of our workers' comp reforms must be to meaningfully reduce premiums" for employers, Spitzer told the group at a Lake George resort in the Adirondacks. He also called for new programs to introduce a managed care-type system for workers' compensation recipients and stronger programs to help injured workers return to their jobs.

"We applaud Eliot Spitzer's commitment to fixing New York's dysfunctional and anti-competitive workers' comp system," said Larry Gilroy, chairman of the New York Compensation Action Network, a business group.

Organized labor, which is overwhelmingly backing Spitzer in the campaign, remained silent on Spitzer's plans.

"There's not a lot of specifics,"' said Mario Cilento, a spokesman for the state AFL-CIO. "I'm sure there'll be plenty of time to talk about it."

Faso, who previously had announced tax cut plans, and Spitzer unveiled their plans during the annual meeting of the state Business Council.

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