Legislative leaders have also proposed to reduce the MTA’s payroll tax on small businesses and schools; reduce the manufacturing tax rate, create a gaming agreement for new casinos; and develop a tax credit for job training programs for inner-city youths.

Cuomo described the multi-pronged approach as “necessary” despite the state’s efforts to balance a $132.5-billion budget earlier in the year. "The economy has taken another turn for the worse," he said, citing a lack of support from federal elected officials. "Not only did Washington fail to act in a constructive way, but the federal government’s gridlock has actually riled the markets and made the situation worse."

Reaction to the plan was generally positive from the CRE industry and local business community. Steven Spinola, president of the Real Estate Board of New York, tells GlobeSt.com that while many are honing in on the tax aspect of the agenda, he says that the meat of the proposal focuses on much-needed investment in the state's future. "There's an awful lot of jobs here that will be potentially created and saved," he says. "Although none of us like the idea that taxes weren't rolled back more, I think it is a proposal that was thoughtful and one that will have a positive impact on the economy."

Heather Briccetti, acting-president and CEO of the Albany-based Business Council of New York State, Inc., says the proposal to reduce the tax rate for corporate manufacturers will help an industry that has experienced “a steep decline” in employment. “The three leaders have proven, once again, that they are focused on restoring our state's fiscal health,” Briccetti says, in a statement. “Restructuring the current income tax brackets and reducing the MTA payroll tax will help ease the financial burden on hardworking taxpayers and business-owners, which is vital to growing New York's economy.”

Robert Yaro, president of the Regional Plan Association, an independent urban research and advocacy group that supports transit-oriented policy and smart growth throughout New York, New Jersey and Connecticut, praised the state’s efforts to reduce MTA payroll taxes and compensate the MTA for $250 million in lost revenue. "We look forward to also working with the governor and the legislature to ensure that the financial health of the MTA is sustained," Yaro says, in a statement. "We don't know how much revenue would be lost with the reductions in the PMT announced today, so we want to make sure that any loss is made up on a dollar-for-dollar basis."

And while the new tax agenda has received support from both Republicans and Democrats, some believe that the plan increases spending during a time when municipalities and county governing bodies are hurting. "From what has been reported in the media so far, the bottom line is that taxes are being raised in New York State and we are still not dealing with our state’s serious spending problem," says State Assembly Minority Leader Brian M. Kolb (R-Canandaigua), in a statement. “There is still no significant unfunded mandate relief for local governments,” he adds, urging that the state should enact a Medicad cap instead. "Tax hikes have never been the answer for creating more private sector jobs and long-term prosperity for New Yorkers. That still holds true today."