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Pols reject idea of taxing employers for MTA
Governor's office: It's a last resort before fare hikes
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March 13, 2009 | 03:17 PM
Elected officials representing Suffolk are expressing opposition to MTA Commission Chairman Richard Ravitch's call for a "mobility tax" of .33 percent on all payrolls within the transit authority's 12-county service region.
His proposal would also add tolls to free bridge crossings.
In "sense resolutions" passed last week, both Brookhaven and Huntington town boards urged state lawmakers to reject Ravitch's proposal. Huntington officials said it would increase that township's tax levies by $200,000.
"Given the current state of the economy," Huntington Supervisor Frank Petrone stated, "it is imperative that all of us in town government to focus on helping residents stretch their precious dollars," and cited "going on record to forestall imposition of ill-conceived state taxes" as one way of doing so.
The proposed mobility tax would raise $1.5 billion a year to cover debt service on a new MTA capital program. The new bridge tolls are expected to bring in another $600 million a year for mass transit.
But Assemblyman Andy Raia (R-East Northport) opined that the MTA has mismanaged its operation for many years and should be broken up and brought under control by the state's Department of Transportation.
"It's just one of the problems with authorities," he said. "They go on to become these monoliths that escape direct government oversight. … I don't think businesses whose employees don't use mass transit should have to pay to subsidize the system."
Raia also said he worries that Long Island Railroad commuters, who pay some of the highest rates in the country, will end up subsidizing New York city riders. "Not to mention, we live on an Island. There should be at least one free way off of Long Island."
Calling the MTA "the poster boy of poor performance," Assemblyman Michael Fitzpatrick (R-St. James) said he fears the proposed tax will kill jobs.
"How do you ask taxpayers to dig deeper into their pocket to subsidize this kind of cost structure?" Fitzpatrick said. "It's outrageous. You're doing further damage to the business climate in this state and we're already in a weak position — and we have the highest combined tax burden in any state in the country."
The recent LIRR employees' disability scandal also troubles him. "Why isn't the governor, why isn't Majority Leader Smith or Speaker Silver demanding that the union and the railroad solve this problem and show a good faith to reduce costs before you ask taxpayers to help you out in this circumstance."
Sen. Kenneth LaValle (R-Port Jefferson) said he will not vote for the tax or toll hikes.
"I think people just don't understand that we have to make cuts, we have to reorganize things [in the MTA] and we just cannot continue to ask people who are hanging on by their fingernails to carry additional burdens," he said.
Sen. Carl Marcellino (R-Syosset) said he could almost live with the increased bridge tolls because if fewer people were to take the 59th Street Bridge, which is now free, it could result in better air quality and improved traffic flow.
"But the mobility tax is far more onerous," he said. "That hits everybody: You're going to be hit a dozen different places all for this one tax. … The state's going to cut aid to schools and hospitals and nursing homes, yet the MTA is going to take more money from them with the tax on their payroll. It's most unfair."
Despite the criticism from local lawmakers, Gov. David Paterson supports the commission's requests, a spokeswoman Erin Duggan said.
"Tax increases are always a last resort," Duggan stated in an email. "This is necessary to avert major fare increases and service cuts to a system used by millions of New Yorkers every day, including commuters from Long Island."
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