Governor Andrew Cuomo came down to West Hempstead on December 12 to sign a bill into law that will permanently eliminate the MTA Payroll Tax for hundreds of thousands of individuals, businesses and schools, and greatly reduces this onerous tax for thousands more. The tax reduction was part of the prior week’s omnibus legislation which also cuts taxes for all families earning less than $2 million per year, also directed millions of dollars into job creation.
The job-killing MTA payroll tax was enacted over my strenuous objections two years ago. This new law will provide a tax cut for 290,000 small businesses, and many other entities will the tax completely eliminated. I will continue to fight for a full repeal of this tax, but working by with Governor Cuomo and my colleagues from the other side of the aisle, rather than engage in partisan gridlock like we’re seeing in Washington, we’re making New York State great again.”
Businesses with an annual payroll of between $10,000 and $1.25 million (approximately 290,000 with more than 71,900 of them on Long Island alone) will no longer be subject to the MTA tax. An additional 6,000 businesses with payrolls between $1.25 million and $1.75 million will see tax cuts of between one-third and two-thirds. All in all, this legislation reduced the MTA tax more than 413,000 self-employed taxpayers.
This tax has been hurting our economy and stifling job creation on Long Island. This legislation not only eliminates the MTA tax for hundreds of thousands of businesses and individuals, and lowers it for thousands more, it also cuts income taxes for 4.4 million individuals. I want to thank the Governor and my colleagues in the Legislature for their dedication in getting the MTA tax reduced, and to get our economy moving again.