Long Island Republicans blasted the Metropolitan Transportation Authority’s latest tax crunch on suburban businesses — calling Thursday for an audit of the chronically cash-strapped agency.
The comments come after Gov. Kathy Hochul and state lawmakers reached a deal to hike state payroll taxes again to help fuel the MTA massive $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 told reporters outside of the Wantagh Long Island Rail Road station.
Ferretti called the tax hike “anti-business” and argued it forces taxpayers to fork over more cash without having any real transparency into how the MTA is managing its finances.
“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 said.
The payroll tax hike proposal came as lawmakers scrambled to figure out how to pay for the MTA’s massive five-year capital plan — a blueprint packed with costly transit upgrades but that came with funding gap of $35 billion.
The legislator demanded that before Albany agrees to any tax hike, that the MTA go through a full independent audit to give residents throughout Long Island and the five boroughs a clear picture of where the money’s going.
If passed, the budget deal would jack up the MTA tax on businesses with payrolls over $10 million a year — raising the rate from 0.34% to 0.635% on Long Island and in counties like Westchester, Dutchess, Orange, Putnam and Rockland, and from 0.6% to 0.895% in New York City.
The change could hit between 5,000 and 10,000 businesses statewide, and could cause bigger companies to leave the state and make cuts that’ll dent worker’s bank accounts.
Billionaire business mogul John Catsimatidis, who owns the Gristedes and D’Agostino’s grocery chains, told The Post the tax would push people out of the state.
“It will lead to fewer investments from business people in New York,” he said.
In March, Nassau County Executive Bruce Blakeman also called for an audit of the MTA, citing over $36.5 million a year from Nassau taxpayers while they’re forced to travel in “crumbling” infrastructure — now agreeing with Ferretti’s stance over the proposed tax hike.
“This increase makes no sense,” Blakeman told The Post, adding that it hurts economic development and places an unnecessary burden on business owners.
Gov. Kathy Hochul’s office said the tax increase is the best way to fund the MTA while not strangling small businesses.
“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 Long Island spokesperson told The Post.
“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.”
