The original MTA payroll tax has been widely condemned by lawmakers in the Hudson Valley

ALBANY – Governor David Paterson proposed an amendment to his 2010-11 budget that would significantly reduce the burden of the MTA payroll tax on businesses in the counties of Dutchess, Orange, Rockland and Putnam. The plan, announced Monday, would cut the Mid-Hudson business tax from .34 percent to .17 percent and raise the payroll tax on New York City businesses to .54 percent.

That is a good start, according to Charles North, president of the Dutchess County Regional Chamber of Commerce.

"While the budget has not been approved, it is important to note that the Governor listened to the concerns of this business community and kept his promise to try to do something about the horrendous MTA payroll tax," said John D'Ambrosio, president of the Orange County Chamber of Commerce.

“I believe that this is a step in the right direction, and if you will excuse the pun, I believe he is on the right track,” he said.

Orange County Executive Edward Diana said at least, this proposal spreads the pain more evenly.

“It’s certainly more equitable, and that’s the one thing I have always been saying from day one that is just to make this equitable.”

But, State Senator William Larkin said the Mid-Hudson should never have had to pay the tax.  Larkin also does not think Paterson’s plan will happen.

“First of all, the Assembly won’t pass that,” he said. “[Assembly Speaker] Shelly Silver won’t pass that at all because he’s not going to double to cost to the people who reside in the city.”

The MTA, meanwhile, late Monday said the proposals, which would need the approval of the legislature and the governor, will barely scratch the surface of the agency’s debt. An MTA spokesman said the governor’s proposal would raise $230 million of a total shortfall of $800 million.