New York City businesses are reportedly angry, according to the New York Post, over Gov. Kathy Hochul’s plan to increase payroll taxes to pay for the New York Metropolitan Transportation Authority’s $68 billion capital plan.
The Post reported that the tax hike could cause big companies to leave the state.
Owner of the Gristedes and D’Agostino’s grocery chains, John Catsimatidis, told the paper, “The exit from New York state will be greater. It will lead to fewer investments from business people in New York. Things will be run tighter, possibly with fewer raises,” he said, adding, “Will there be fewer hires? Absolutely!”
On Monday, Hochul and New York lawmakers announced a payroll tax increase from 0.6% to 0.895% for New York City companies holding a payroll budget of $10 million or more. For companies on Long Island, Westchester, Dutchess, Orange, Putnam, Rockland, and Westchester counties, the tax increase will go from 0.34% to 0.635%. But companies with payrolls under $1.75 million will have their payroll tax rate cut in half.
A source told the Post that the increase could affect 5,000-10,000 New York companies. And Catsimatidis said he doubted the tax hike would feed the MTA’s “bottomless pit.”
The tax hike will cover most, but not all, of the MTA’s long-term budget plan for big-ticket infrastructure projects. Altogether, the taxes would be expected to generate $65 billion, falling short $3 billion of the MTA’s initial ask.
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Author: Dillon B
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