In the News
The Poughkeepsie Journal: Hall, Hinchey, Murphy ask Paterson to reduce local MTA payroll tax burden
January 26, 2010
After working to ensure that the Metropolitan Transit Authority (MTA) received $110 million in federal funds to maintain service in the Hudson Valley and prevent a tax increase, U.S. Representatives John Hall, Maurice Hinchey, Scott Murphy, Nita Lowey and Eliot Engel, and are calling on Gov. David Paterson to immediately introduce legislation to reduce the MTA payroll tax by $110 million, with the reduction applying to payrolls in the Hudson Valley.
"The payroll tax disproportionately affects residents of the Hudson Valley, whose access to MTA services are not uniform," the Members of Congress wrote in a letter to Paterson today. "Due to the nature of the tax, it falls disproportionately on small businesses based in these counties. These small businesses, unlike the larger businesses based in New York City, and even the residents of the region, benefit the least from the MTA service. These small businesses are the region's economic engine, and they should not be hit with a regressive tax, particularly in this time of economic crisis."
The U.S. Representatives worked to insert a provision into the Fiscal Year 2009 Supplemental Appropriations Act that allows transit authorities to spend up to ten percent of their American Recovery and Reinvestment Act funding for operating expenses. For the MTA, this would amount to approximately $110 million. This is the first time since the 1970's that Congress has allowed federal funds to be used for operating expenses.
"Congress took this extraordinary step to stem reductions in service and staffing at transit agencies and also to prevent tax increases which in this time of economic crisis will only hurt small businesses and middle class families and stifle job creation and our recovery efforts," the Members of Congress wrote. "The state of New York has the responsibility to consider adjusting the payroll tax to reflect that the MTA has up to $110 million in additional revenue that it could choose to use to offset this onerous tax."
The Poughkeepsie Journal: Hall, Hinchey, Murphy ask Paterson to reduce local MTA payroll tax burden
January 26, 2010
After working to ensure that the Metropolitan Transit Authority (MTA) received $110 million in federal funds to maintain service in the Hudson Valley and prevent a tax increase, U.S. Representatives John Hall, Maurice Hinchey, Scott Murphy, Nita Lowey and Eliot Engel, and are calling on Gov. David Paterson to immediately introduce legislation to reduce the MTA payroll tax by $110 million, with the reduction applying to payrolls in the Hudson Valley.
"The payroll tax disproportionately affects residents of the Hudson Valley, whose access to MTA services are not uniform," the Members of Congress wrote in a letter to Paterson today. "Due to the nature of the tax, it falls disproportionately on small businesses based in these counties. These small businesses, unlike the larger businesses based in New York City, and even the residents of the region, benefit the least from the MTA service. These small businesses are the region's economic engine, and they should not be hit with a regressive tax, particularly in this time of economic crisis."
The U.S. Representatives worked to insert a provision into the Fiscal Year 2009 Supplemental Appropriations Act that allows transit authorities to spend up to ten percent of their American Recovery and Reinvestment Act funding for operating expenses. For the MTA, this would amount to approximately $110 million. This is the first time since the 1970's that Congress has allowed federal funds to be used for operating expenses.
"Congress took this extraordinary step to stem reductions in service and staffing at transit agencies and also to prevent tax increases which in this time of economic crisis will only hurt small businesses and middle class families and stifle job creation and our recovery efforts," the Members of Congress wrote. "The state of New York has the responsibility to consider adjusting the payroll tax to reflect that the MTA has up to $110 million in additional revenue that it could choose to use to offset this onerous tax."
