The Business Council in a statement Tuesday said it was lamentable that deductions of state and local taxes will be restricted to a $10,000 cap.

But as others in New York have said the plan would hurt the state budget, the group indicated the tax bill could be an opportunity for the state to pare back spending.

“Given these uncertainties, and already forecasted state budget deficits, it is time for New York’s leaders to take a hard look at our spending relative to other states,” said Business Council President Heather Briccetti.

“There is no reason why our Medicaid expenses should exceed those of Texas and Florida combined. Similarly, we need to reassess our education spending and determine why our state is one of the leaders in per-pupil spending, yet falls toward the middle and bottom of the pack in most assessments.”

At the same time, Briccetti added the Legislature should look toward scaling back on regulations that have long been a source of consternation for business groups.

“Lawmakers must also look at areas where we have policies that stifle economic growth, innovation and job creation. Reforming items like the Scaffold Law, prevailing wage mandates and others will allow our state to blunt the impact of the coming loss in personal income tax revenue and put us on more equal footing with other states,” she said.

“We also call on our leaders at the state and national levels to demand New York receive more of its fair share of federal spending. Currently, we are a donor state, contributing nearly $50 billion more in taxes than we receive. This tax reform legislation will make that disparity even worse. New York has many great things to offer. From world-class public and private higher education institutions, a diverse workforce, abundant water resources, and much more – we are well-positioned to compete against our fellow states. All we need to do is stop getting in our own way.”