New York State is in serious economic trouble (who isn’t these days?), and it is looking to impose crazy new taxes and cut back on services that will deal a serious blow to every business owner and resident. One of the most outrageous taxes being proposed is the Metropolitan Transportation Authority (MTA) mobility tax , also known as the “PAYROLL TAX”. The reason for the tax is to help bail out the MTA, which is facing a $1.2 BILLION shortfall in it’s 2009 operating budget. The problem with the payroll tax is that it will place a 0.33 percent — 33 cents on every $100 — tax on payrolls in the MTA’s 12-county service area: Orange, Rockland, Dutchess, Putnam, Westchester, Nassau, Suffolk and the five counties that comprise New York City.
The payroll tax will affect ALL BUSINESSES – from major corporations all the way down to sole-proproprietors. It would apply to every payroll — villages, towns, counties, school districts, nonprofits and self-employeds, as well as conventional businesses.
The biggest issue is that businesses which are owned and operated in the Mid-Hudson Valley, especially Orange County, DON’T USE THE SERVICES THAT THE MTA PROVIDES!!!! The MTA provides train and bus service to metropolitian areas like NYC; if you have a business in Orange County you don’t take the train or bus to work. Why should we be taxed for services we don’t use, can’t use, and will never use?
The Orange County Chamber of Commerce has created a letter to send to our state representatives to show our opposition to the payroll tax. The letter appears below; if you have the opportunity to do so, please send copies to your local elected officials. If you have questions or need to know who your representatives are, contact me and I’ll get you the proper info.
We have to show Albany that we’re mad as hell and we aren’t going to take it anymore!
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<to NYS elected officials>
As a business operating in the Mid-Hudson Valley, I am adding my voice to those who strongly oppose the Ravitch Commission’s recent recommendation to impose a payroll tax (one-third of one percent on total payroll) on businesses and organizations within the Metropolitan Transportation Authority’s service territory.
I thoroughly understand the importance of having a safe and efficient transportation system. However, the billion dollar deficit being faced by the MTA should not be the responsibility of our region’s businesses, particularly when individuals, businesses, not-for-profits and governments within the MTA district already contribute significantly to the MTA through several other taxes and assessments. The addition of a payroll tax to this list of mandates is unacceptable, especially in counties like Orange and Rockland where there is limited access to train stations and where many of the businesses that would be required to pay the tax would receive little or no benefit in return.
It is no secret that we all are facing unprecedented challenges in today’s roller coaster business world. Compromises must be made on all sides when it comes to solving the complex problems that face our businesses, our communities and our government. However, the imposition of a tax on selected businesses and organizations to solve one organization’s financial woes is not the way to go.
Please join me in standing against this proposed new tax on New York’s businesses. Thank you.