Bloomberg Rejects Paterson's MTA Tax Changes
February 8th, 2010
Gov. David Paterson has proposed shifting the structure of the Metropolitan Transportation Authority payroll tax so that businesses in New York City would pay a greater percentage than businesses in other areas. Mayor Michael Bloomberg is not pleased.
Currently all counties in the metropolitan commuter transportation district pay a flat rate of .34 percent. Paterson would change the formula so that businesses in New York City would pay .54 percent, while all other counties in the metropolitan commuter transportation district would pay .17 percent. The old proposal would raise $1.3 billion for the cash-strapped MTA. The new proposal would raise $1.54 billion.
“The new proposal I am putting forward will provide relief to straphangers, as the MTA makes the difficult decisions necessary to balance its budget during an historic fiscal crisis that is significantly impacting all levels of government,” Paterson said in a statement. “In addition, it also makes key improvements to the current tax structure, promoting regional equity and delivering relief to small businesses.”
Bloomberg is having none of it. He says New York City businesses would be overburdened. Here is Bloomberg’s statement:
“First the Governor proposed a state budget that slashes support for New York City but not the suburbs, and now he proposes to wallop city businesses with more taxes while lightening the load for businesses in the suburbs. The idea that the State can spare the suburbs while sacking the City is terrible economics, grossly unfair, and contrary to every principle of good regional development. We in New York City saw the MTA’s problems coming and came up with a plan that would have created a steady stream of revenue for capital programs. Now the Governor proposes to shift an extra half billion dollar burden onto New York City taxpayers, who are the economic heart of our region. I will work night and day with our City’s delegation in Albany to stop this wrongheaded proposal from moving forward.”
By David King on February 8, 2010, 8:45 pmIn category: Albany, Eye on Albany | 1 Comment »



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February 8th, 2010 at 10:41 pm
Scrap the payroll tax all together. Either raise the fares or put tolls on roads and bridges, but do not put an unfair tax on businesses.