New York businesses will save roughly $1 billion a year in insurance costs as a result of a 20 percent rate cut in the state?s much-criticized workers? compensation system, officials said on Wednesday. Gov. Eliot Spitzer called the savings a significant boon for the state?s business community, describing the lowered insurance costs as ?in essence a $1 billion tax cut for the businesses of the State of New York,? money that he said would become available for capital investment, hiring new employees and research and development. The officials said the savings represented more than a 20 percent drop in rates for workers? compensation insurance, which is believed to be the largest cut in the system?s history.
See "Rate Cut for Workers? Insurance Will Save Employers $1 Billion", Nicholas Confessore, The New York Times, July 11, 2007