Lengthy Island Republicans blasted the Metropolitan Transportation Authority’s newest tax crunch on suburban companies — calling Thursday for an audit of the chronically cash-strapped company.
The feedback come after Gov. Kathy Hochul and state lawmakers reached a deal to hike state payroll taxes once more to assist gasoline the MTA huge $68 billion capital plan.
“There’s going to be employers that can’t give the raises they had planned on, or employers who can’t hire in the numbers that they hoped because of this increased tax levied by the government,” County Legislator John Ferretti informed reporters exterior of the Wantagh Lengthy Island Rail Highway station.
Ferretti known as the tax hike “anti-business” and argued it forces taxpayers to fork over additional cash with out having any actual transparency into how the MTA is managing its funds.
“The worst part of all of this, the proposal does absolutely nothing to address the root problem — the MTA’s utter lack of fiscal responsibility for its systematic culture of waste, and it’s gone unchecked for years,” Ferretti stated.
The payroll tax hike proposal got here as lawmakers scrambled to determine pay for the MTA’s huge five-year capital plan — a blueprint filled with expensive transit upgrades however that got here with funding hole of $35 billion.
The legislator demanded that earlier than Albany agrees to any tax hike, that the MTA undergo a full unbiased audit to present residents all through Lengthy Island and the 5 boroughs a transparent image of the place the cash’s going.
If handed, the finances deal would jack up the MTA tax on companies with payrolls over $10 million a yr — elevating the speed from 0.34% to 0.635% on Lengthy Island and in counties like Westchester, Dutchess, Orange, Putnam and Rockland, and from 0.6% to 0.895% in New York Metropolis.
The change may hit between 5,000 and 10,000 companies statewide, and will trigger greater corporations to go away the state and make cuts that’ll dent employee’s financial institution accounts.
Billionaire enterprise mogul John Catsimatidis, who owns the Gristedes and D’Agostino’s grocery chains, informed The Publish the tax would push folks out of the state.
“It will lead to fewer investments from business people in New York,” he stated.
In March, Nassau County Government Bruce Blakeman additionally known as for an audit of the MTA, citing over $36.5 million a yr from Nassau taxpayers whereas they’re pressured to journey in “crumbling” infrastructure — now agreeing with Ferretti’s stance over the proposed tax hike.
“This increase makes no sense,” Blakeman informed The Publish, including that it hurts financial improvement and locations an pointless burden on enterprise house owners.
Gov. Kathy Hochul’s workplace stated the tax enhance is the easiest way to fund the MTA whereas not strangling small companies.
“Mr. Ferretti wants to burden towns and small businesses with the cost of maintaining the LIRR so large corporations can pay less,” Gordon Tepper, Hochul’s Lengthy Island spokesperson informed The Publish.
“Under Governor Hochul’s plan, the Town of Hempstead is exempt, and small businesses actually see tax relief. Ferretti’s focus isn’t on solutions; it’s on political theater.”
