Long Island Republicans have denounced the Metropolitan Transportation Agency's latest tax conditions on suburban businesses. On Thursday, they called for an audit of chronically cash-bound institutions.
The comments come after Gov. Kathy Hochul and state legislators signed a deal to try and raise state payroll taxes again to promote the MTA's massive $68 billion capital plan.
“There will be employers who cannot give the salary increases they had planned, or employers who cannot hire the number they wanted because of this increased tax imposed by the government,” County Councilman John Ferretti told reporters outside the Onetag Long Island Railroad Road.
Ferretti called the tax hike “anti-business” and argued that it would force taxpayers to fork with more cash without real transparency in how the MTA manages its finances.
“This proposal, the worst part of all this, does absolutely nothing to address the underlying issue. The complete lack of financial responsibility for the systematic culture of waste in the MTA has not been checked for years,” Ferretti said.
When lawmakers scrambled to find a way to pay for the MTA's massive five-year capital plan, the payroll tax hike proposal is a blueprint packed with expensive transport upgrades, but it had a $35 billion funding gap.
Lawmakers requested that the MTA undergo a fully independent audit to clarify where the money is headed by Long Island and the Five District residents before Albany agreed to a tax hike.
If passed, the budget agreement will significantly increase MTA taxes on businesses with salaries exceeding $10 million a year. Counties such as Long Island, the Netherlands, Orange, Putnam and Rockland will raise tax rates from 0.34% to 0.635%, while New York City will raise tax rates from 0.6% to 0.895%.
The change could collide with 5,000-10,000 businesses across the state, potentially causing large businesses to leave the state and cut dent workers' bank accounts.
Billionaire Business Mogul John Catosimatidis owns grocery chains in Grist and Dagostino, and said the tax would drive people out of the state.
“That would result in less investment from businessmen in New York,” he said.
In March, Nassau County executive Bruce Blakeman sought an audit of the MTA while being forced to travel on “collapse” infrastructure, citing more than $36.5 million a year from Nassau taxpayers.
“This increase doesn't make sense,” Blakeman told the post, adding that it would undermine economic development and put an unnecessary burden on business owners.
Gov. Kathy Hochul said tax cuts are the best way to fund MTAs while not strangled small businesses.
“Ferretti wants to put a burden on towns and small businesses at the cost of maintaining the LIRR,” said Gordon Tepper, a spokesman for Long Island for Hochul.
“Under Gov. Hochul's plan, the town of Hempstead is exempt and small businesses are actually seeing tax cuts. Ferretti's focus is not focused on solutions. It's in the political theatre.”
