By Hank Russell
Nassau County Legislator John Ferretti (R-North Massapequa), fellow lawmakers, and a coalition of Long Island business owners railed against Governor Kathy Hochul’s plans to increase the MTA Payroll Tax, slamming the proposal as a blatant cash-grab and tax on Long Island’s working class.
Standing outside the Long Island Rail Road station in Wantagh, Ferretti said there were “some disturbing discussions” among Governor Kathy Hochul, Assembly Speaker Carl Heastie (D-Bronx) and Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers).
Ferretti said the proposed tax hike would dump additional funds into the Metropolitan Transportation Authority (MTA), an agency he described as being mismanaged and rife with waste, fraud, and abuse. Plans to increase the tax come on the heels of the congestion pricing program, which he said effectively penalizes Long Island commuters and business fleets for driving to and from work each day.
“Increasing the payroll tax is yet another slap in the face of hard-working Long Islanders who already receive subpar MTA service and yet we are constantly called upon to fund infrastructure improvements for New York City’s transit system without receiving any of the benefits,” stated Ferretti.
The legislator also said that this tax hike proposal “amounts to a penalty on employment, and this — combined with other harmful Albany policies — creates a hostile climate for businesses that forces jobs, investment, and families out of New York State.”
The purpose of the tax hike, which was introduced in 2009, was to “rescue the MTA from oblivion,” Ferretti said. However, more than 15 years later, the MTA continues to hemorrhage cash while providing mediocre service to customers.
“They constantly call on us [Nassau County residents] to be the piggy bank for the MTA and New York City, and we are tired of it,” Ferretti said.
Additionally, Ferretti said that the agency’s gross financial mismanagement includes going billions of dollars over budget in overtime each year, with various media outlets reporting on the incredible waste, fraud, and abuse associated with these costs. What’s more, the MTA routinely announces what Ferretti called misguided and often laughable “lipstick on a pig” initiatives that purport to cut down on fare jumpers and crime, such as plans to spend $1.5 billion on turnstile “fins.”
Business leaders have expressed grave concerns that an increase in the tax would further reduce economic growth and employee hiring, while forcing them to pass on increased costs to consumers.
“The responsibilities and burdens placed on the people of Long Island — it’s just too much,” Tom Valenti, the owner of Piccolo’s in Bellmore, said. “I am asking the people in Albany to find a better way to fund this project because the people they’re asking to fund this project, they’re running on fumes.”
Ferretti went on to call for a comprehensive review of the MTA’s books, arguing that residents have a right to know where their money is going as their communities are once again being asked to foot the bill for the agency’s negligence.
“Without change, this tax hike is nothing more than a bailout for a failing agency and is accountable to no one with no incentive to change,” Ferretti said.
Long Island Life & Politics reached out to Hochul’s office and the MTA. The MTA referred LILP to the governor’s office.
Hochul spokesperson Gordon Tepper said, “Mr. Ferretti wants to burden towns and small businesses with the cost of maintaining the LIRR so large corporations can pay less. Under Governor Hochul’s plan, the Town of Hempstead is exempt, and small businesses actually see tax relief. Ferretti’s focus isn’t on solutions; it’s on political theater.”