GrowPAC Endorses MTA Tax Repeal Legislation

Lee M. Zeldin

June 08, 2011

Senator Lee M. Zeldin (R, C, I –Shirley) announced that GrowPAC, a political organization dedicated to renewing America’s commitment to smaller government, individual freedom, private sector growth and strong national security has endorsed his MTA Payroll Tax Repeal legislation (S.5596/A.8193).

GrowPAC released the following statement:

New York is losing businesses and jobs in part because we are the most heavily taxed state in the nation.  One of the most harmful taxes is the 2009 MTA payroll tax because it penalizes people for working in New York. 

State Senators Lee Zeldin and Jack Martins have just introduced legislation to phase out the harmful tax in Nassau, Suffolk, Westchester, Orange, Dutchess, Rockland and Putnam counties.  The tax reduction would be valuable not only because it would create jobs in these counties by reducing the tax burden but also because it would send a signal to businesses around the nation that New York is back -- it is finally improving its business climate.

“We strongly endorse repeal of the MTA payroll tax and Mr. Zeldin’s bill,” said David Malpass, Chairman of   George Latimer, a Democratic assemblyman from Rye, is carrying the parallel legislation in the Assembly and gathering co-sponsors.

Governor Cuomo's proposal to limit property tax increases to 2% per year is not nearly enough of a change in the tax environment to get businesses to come to New York. “Governor Cuomo should re-double his efforts to reduce New York’s tax burden.  If he joins the movement to repeal the MTA payroll tax, New York will become a growth leader again,” said Malpass.  “Businesses, especially small businesses, are crying out for relief and a new direction for New York.” 

New York politicians sold the MTA tax to each other on the claim that they needed to take extra money from the people in order to pay for the Mass Transit Authority, but in reality the MTA can be funded from other taxes and through better use of its own resources.  Zeldin addresses this carefully in his legislative initiative: “There is absolutely no doubt that the MTA, without increasing fares or cutting services, can balance its books after this legislation is implemented.

“GrowPac urges all New Yorkers to contact their state senators and assemblymen to encourage their co-sponsorship and active support of MTA tax repeal,” Malpass continued.  “The MTA payroll tax is a unique burden on New Yorkers.  It adds a whole new layer of taxes to a company’s payroll – which has already been taxed by federal, state and local income taxes and for social security and Medicare.  The direction of New York’s tax code has been ever-worse, adding new burdens, new types of taxes and higher tax rates.  That has to change.” 

“I am thrilled that GrowPAC has endorsed our MTA Payroll Tax repeal legislation.  It is important that we eliminate this job- killing tax as soon as possible, and I am excited to add this endorsement to our growing list.  I am working very hard to bring together a broad bi-partisan coalition to fight for this tax repeal legislation,” said Senator Zeldin.

GrowPAC’s endorsement adds to a growing list of endorsements Senator Zeldin’s legislation has received in the last three days since being announced. GrowPAC joins the National Federation of Independent Businesses, the Business Council of New York State, Inc., and the Conservative Party of New York State in supporting this legislation.