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Gov's Plan To Fix MTA: Tax Cut In Suburbs, Tax Hike In City

Under Gov. Paterson's plan to rescue the MTA from a $400 million budget shortfall, New York City businesses would see a payroll tax increase by 59 percent, surging from .34 percent for every $100 of payroll to .54 percent. Meanwhile, the payroll tax in suburban areas would be cut in half.

After politicians and residents from Suffolk, Nassau, Putnam, Westchester, Orange, Dutchess and Rockland counties complained about the tax, which was implemented last year in an MTA bailout, Paterson proposed cutting the tax in suburbs to .17 percent. Paterson says the new tax is fairer, but Mayor Bloomberg told the Post it's "wrongheaded," and added in a statement: "The idea that the state can spare the suburbs while sacking the City is terrible economics, grossly unfair and contrary to every principle of good regional development."

The Daily News notes that the change would plug between $230 and $240 million of the MTA's $400 million budget gap, though it would do nothing to prevent widespread service cuts that were already approved. An MTA spokesman said it would "lessen the need for additional cuts," but "[i]t would not eliminate the need for the service cuts and administrative reductions included in the MTA budget passed in December."

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  • ElleCat

    I'm so sick of people trying to push biking on me as a reliable means of transit. It's freaking cold out there, you jackass. As if you can even afford a used bike after the city and state are done ravaging your paycheck.

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  • drewo

    This is the kind of important, and complex, news story that affects almost all New Yorkers, in the City and the suburbs.



    However, when you turn on your local TV news tonight, the vast bulk (if not all) of the program will be devoted to a close analysis of a topic more attuned to the mindset of a 6-year old - snow.



    Our mass media fails us almost as much as our elected representatives.

  • jles

    You clearly don't watch enough NY1.

  • Steven

    More like about the snowstorm tomorrow. Seeing Mike and Amber go buy a shovel because well it "never" snows here.

  • PTG in nyc

    Besides the fact that I don't like the plan, it fails to address the following:



    1) How exactly the MTA spends its money, and exactly how lazy, overpaid, and overstaffed the TWU workers are.



    2) What the plan will be come 6 months from now when there is inevitably another $400 million shortfall.

  • Ishtar

    *sigh*



    There really isn't a big problem with how the MTA spends its money, BUT there is a huge problem in how our elected officials have continuously short changed the MTA and provided it with unsteady revenue streams.

  • whitecastlerock

    There is a problem with how they spend their money. Every project they start hemorrhages money. Every single blessed project is either delayed or millions over budget-how is that NOT a problem?

  • Ishtar

    Take that up with our good legal system. Just because they're a government agency doesn't mean they can skirt regulation and just what they want. This isn't China.

  • drewo

    Every few months, the columns along the platform on my local #6 Spring St. subway stop are (re)painted. Judging from the peeling paint overhead, and the grimy walls all around, it seems to me that the columns really don't need a new shade of "MTA blue" so often. This practice strikes me as some kind of arcane union make-work requirement. Not to mention the application of the paint is so crude and slapdash, you wonder if the workers were drunk when they got out the brushes.



    I don't think this is the best use of MTA funds and manpower.

  • hta

    There isn't a big problem with how the MTA spends money? Are you serious?

  • Ishtar

    I'm serious and I'm not gonna type much more about it. Very few people on this board even bother to look at revenue streams for different government agencies before they jump on the "mismanagement" wagon. It doesn't help that elected officials jump on that same wagon AFTER continually underfunding everything other than their own bank accounts. How solvent can you expect something to be if it's constantly being shorted?

  • hta

    Maybe the MTA wouldn't have to worry about being shorted if it didn't keep wasting money. Like the renaming of the Triborough Bridge. What was the point? What did that cost? Like 5 million? The X25 bus from Grand Central to Wall St. What's wrong with the 4,5, 6 lines? 7 agency presidents who I'm sure have all their staffers and perks. That's different from their management where there's also a president and CEO. Why not just have 1 who overseas everything like every other company? The list goes on...

  • Ishtar

    DECADES OF UNDERFUNDING!!!! What is so difficult to understand about that. This system was in shambles when it was purchased from the private sector and fares nor government funding ever increased enough to make up for the shortfall.



    Damn. Do you people really think shit happens in a vacuum?

  • Blue387

    How much could the MTA raise if it increased the subway fares by 25 cents?

  • How Ya Doin

    I nominate Bloomberg to run Earth.

  • MT

    Why doesn't NYC just withhold all of our money from NYS until all of our bills are paid first? As it is, NYC gives NYS more than we get back. Why don't we just put ourselves first like Albany seems to do for itself?

  • TKaisen

    I don't see the issue with this. Why should the people who live upstate and never use the trains be forced to fund them? The businesses in the city that get the most use out of the rails are the ones that should pay for them.... not businesses in the suburbs that see zero benefit. The entire state isn't beholden to what's good for Manhattan, even though Manhattan thinks it should be.

  • If you have read other articles on this site, NYC provides a great deal of the money used to run the State of NY. So why exactly should we get taxed more when we already provide so much money for the state? And payroll tax? What does that have to do with the MTA whatsoever? It's not like Tolls/fare increase etc, which affects the user of the MTA directly, but it affects everyone in the city...by payroll, they mean every working stiff gets screwed...how do you like that? I don't.

  • TKaisen

    Why doesn't NYS just withhold the city's water from all the reservoirs upstate until they get their check?

  • drewo

    That's our local representatives NOT working for us.



    also this:

    "Long Island Railroad and MetroNorth costs to operate each rail car for an hour were much higher than the subway"



    http://www.r8ny.com/blog/larry_littlefield/fta_2007_operating_cost_data_the_subway_is_cost_effective_but_will_have_to_be_more_so_or_die_with_the_res

  • Wza

    Seriously.

  • silver

    So why should Rockland and Orange that get just 1 MTA sponsored NJT rail line, no subway, no buses, pay the same as NYC that has buses, subways, and rail everywhere?

  • Steven

    Agreed. Putnam, Dutchess and Nassau counties have a bit more service, but it pales to what NYC has.



    It's always the same argument in the city takes the burden from the suburbs or the suburbs take the burden from the city.

  • Steven

    Meant to say Suffolk county, not Nassau.

  • peanuthead

    yeeeaaaah, as if the city does not contribute enough to the state's coffers!! c'mon, are we expected to truly believe those extra tax dollars will go to a well oiled, slick and smoothly running MTA? please!



    time to secede from the state.

  • whitecastlerock

    Is this the BOMBshell the NY Times was referring to?

  • brockart

    Why would they need to reduce the tax in the suburbs? Why not keep the suburb tax the same, that way they would actually be generating some money, rather than just pushing the funds from the country folk onto the city folk.

  • drewo

    A lot of folks in those suburbs use MTA commuter trains to get to their jobs in the City. Those jobs allow those commuters to live in the burbs, and contribute to the health and well being of those burbs (cause there ain't too many jobs happening up there).

  • Steven

    I can see the counties in Rockland, Putnam, Suffolk, Orange and Dutchess counties wanting a lower rate. Rockland has what 3 stations? Orange has more stations, but the trains run every 2-3 hours and it's not even a direct ride into Manahattan. Suffolk County the greenpoint line has like 2-3 trains a day.



    To be fair the service in most of the suburbs doesn't even come close to what the city has. I don't understand why Westchester and Nassau counties got the lower rate. They have service very similar to the city. With tons of LIRR and MNRR stations, but Long Island Bus. If anything those counties should have the same rate as the city.

  • Ishtar

    Ugh...just raise the darn fare.

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