Senator Charles J. Fuschillo, Jr. (R-Merrick) today joined Governor Andrew Cuomo at the signing of a law to begin the repeal of the MTA payroll tax. Senator Fuschillo supported the law in the Senate.
“The MTA payroll tax is a job-killing tax which raised costs and penalized businesses for hiring new employees. That’s the last thing we need in this economy. Repealing this tax is a positive step that will help businesses save money which they can reinvest into creating jobs and business development. I thank Governor Cuomo for approving this law,” said Senator Fuschillo.
The MTA payroll tax imposed a tax of 34 cents for every $100 in salary for every employer in Nassau and Suffolk Counties. Since the tax increased as an employer’s payroll increased, it discouraged employers from creating new jobs or hiring new employees. Senator Fuschillo strongly opposed the MTA payroll tax.
The new law will repeal the MTA payroll tax for small businesses whose total payroll expenses are below $1.25 million, which accounts for approximately 80 percent of the businesses who are currently paying the tax. Businesses with total payroll expenses of less than $1.75 million will have their payroll tax rates cut. In addition, both public and non-public schools will be exempt from paying the payroll tax.
Local small business owners praised the measure, which was part of a tax cut and job creation plan approved by the State Legislature.
“Repealing this tax is great news for small businesses, especially in these economic times. As small business owners, we want to do everything we can to help put our neighbors back to work; this tax penalized us for doing that. Taking this burden off our backs is a step in the right direction to help small businesses grow and develop. I thank Senator Fuschillo for fighting for this law and Governor Cuomo for signing it,” said Wantagh Chamber of Commerce President Chris Brown.
"As a small businessman, as an attorney who represents dozens of small businesses and as the former President of the Bellmore Chamber of Commerce, I am very happy to see the repeal of the MTA Payroll Tax. This will remove an unfair tax burden on local businesses. The result is a friendlier and more profitable small business environment. By removing this tax and thereby reducing the cost of doing business, small businesses have a greater opportunity to succeed. As small business thrives, jobs are created and the commercial real tax base in the local communities is stabilized. The repeal is also a positive example of responsive government recognizing an inequity in the tax system and fixing it," said David Weiss, Past-President of the Chamber of Commerce of the Bellmores.
“The Merrick Business community appreciates that Senator Fuschillo, Governor Cuomo, and our elected representatives have been very sensitive to our plight of paying for something that we do not use. The MTA payroll tax caused such an economic hardship to the point where many businesses had to lay off employees. Repealing this tax will give them an incentive to hire or rehire employees and grow their businesses, both which benefit the entire community,” said Randy Shotland, President of the Merrick Chamber of Commerce.
Senator Fuschillo (left) is pictured with Governor Cuomo (right) with the newly signed law which begins the repeal of the MTA payroll tax.