Ravitch: "I Personally Wouldn't Raise the Payroll Tax"
February 22nd, 2010
Lt. Gov. Richard Ravitch told the Gazette today that he personally does not support Gov. David Paterson’s plan to change the structure of the payroll tax on all counties serviced by the Metropolitan Transportation Authority.
“I personally wouldn’t raise the payroll tax in the city or cut it in the suburbs. At this point leave well enough alone.” said Ravitch.
Paterson’s plan would raise the tax on businesses in New York City from .34 to .54 percent. The tax on businesses outside of New York City would drop from .34 to .17 percent. New York City would go from paying 70 percent of the overall tax burden to 88 percent.
The commission Ravitch headed recommended the payroll tax along with bridge tolls to provide the MTA with a steady funding source but the plan was rejected by a recalcitrant Senate and only some of Ravitch’s recommendations were enacted.
Ravitch said he came to the conclusion that the payroll tax was an appropriate fundraiser for the MTA, “After consulting with business groups, the fed, every economic forecaster the state and the city use, all the budget offices and everybody concluded that would have the least adverse impact of all possible tax revenue.”
Paterson’s plan clashes with Ravitch’s previous assertions that the entire metro area benefits from the MTA and should therefore share the burden. However there has been great outcry in the suburbs against the tax.
The payroll tax has yielded lower than forecasted returns, leaving the MTA with a growing budget gap.
“I think had the legislature passed the tolls that I recommended we would have had a cushion up to this point,” said Ravitch.By David King on February 22, 2010, 6:04 pm
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