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 wouldnt 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 on February 22, 2010, 6:04 pm
In category: Albany,Eye on Albany,Transportation | 4 Comments »

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4 Responses to “Ravitch: "I Personally Wouldn't Raise the Payroll Tax"”

  1. Boris Says:
    February 23rd, 2010 at 11:03 am

    Richard Ravitch for governor!

    Ravitch is good at saying what needs to be said; now he just needs to call out the recalcitrant legislators by name to make sure they won’t get reelected: Sheldon Silver, Pedro Espada, Jr., Carl Kruger, Ruben Diaz, Sr., and Hiram Monserrate (who has a pretty low chance of reelection already). These are the criminals hijacking the MTA and the state’s economy with it.

  2. JAVSnyc Says:
    February 26th, 2010 at 12:05 pm

    Governor Paterson,

    Your politics are neither left nor right. You are just wrong for New York in any light.

    You asked state employees to take a pay cut and give your staff raises. You asked forgiveness for past sins with women and drugs and involve yourself in backroom deals with AEG. You asked for the police to not involve themselves in political affairs and interfere in the investigation of your advisor. You asked to penalize the drinking of soda in the name of health and sought new taxes on gyms and personal trainers.

    Now again, you seek to take money from our pockets, sap strength from our economy and steal food from our table. By raising the cost of soda by 50%, are you hoping that NY will start drinking more cheap booze? Are you hoping that the beer-goggles can elect you to your own term as governor?

    Are you just the front for special interest thievery? Is the two million from SEIU 1099 to support of the soda tax the going price for selling out New York?

    When I travel across the state, I see communities suffering Governor Paterson, in the end you ring false.

  3. JAVSnyc Says:
    March 1st, 2010 at 4:51 pm

    In his budget, Governor Paterson proposed a number of new taxes, the closure of facilities and other measures to suit a political agenda. With the end of his tenure well within sight, what is to come of these initiatives and the outside agencies that support them?

    It is hard to believe that the Service Employee International Union (SEIU) 1199 will simply allow the two million dollars investment in the soda tax simply fall to the wayside. We know whom the SEIU had in their pocket. And how that black-handed, double-dealing agent worked out for them.

    So who will be the new face of the SEIUs regressive policy for New York? What politician would be willing to back a union in their money grab from hardworking middle and lower classes of New York?

  4. Website Says:
    September 8th, 2010 at 12:34 am

    The major issue is a slow economy, lack of jobs …… we really need to get our priorities right and focus on targeted job creation.

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