GUEST OP-ED: MTA Payroll tax stifling economic growth

Coming off an extremely successful legislative session thatclosed a $10 billion budget deficit without any new or increasedtaxes, Governor Cuomo has turned state government’s attention tojob creation as our number one priority.

Our main goal is to send a signal to job creators and businessowners around the world that New York is open for business,furthering our efforts to attract the employment we need to turnour economy around.

Yet, among the miles of red tape we heap on business owners in NewYork, one tax is so onerous that it is directly disincentivizingbusinesses from hiring new employees. The levy in question is theMTA payroll tax.

The message that the MTA payroll tax sends to business owners,non-profits and job creators is that we will penalize you for everysingle job you create; every single dollar you pay in salary.

This fee hits businesses right where it counts, taking a chunk outof their ability to hire employees. In a time of fiscal crisis,state government needs to cut costs wherever possible. Bypreventing businesses from meeting their full hiring potential, weare driving up unemployment and adding a gigantic burden to thestate’s coffers. No matter how you slice it, this is a regressivetax hitting job creators at the worst time possible — a prolonged,economic slump.

While the tax takes a heavy toll on our economy, it strikes ourschools as well. Both public and private schools face this levy,forcing them to choose between eliminating curriculum and programsor laying off faculty.

As Mayor Bloomberg proposes massive layoffs across the city’sschool system, now is not the time for state government to pinchour schools’ budgets any further. Public schools are reimbursed fortheir payments, but there is not enough money in the coffers tocover the cost even temporarily. Furthermore, private schoolsreceive no refund, and when private schools are forced to close,the students have to transfer into public schools, at a higher costto taxpayers.

The MTA is one of the linchpins that make our city function. It isa crucially important agency that millions of New Yorkers rely onevery day to get to work, see their doctor and visit their lovedones. We certainly need to support the MTA. However, the payrolltax is the wrong way to do so.

Assemblymember Nicole Malliotakis represents the 60th A.D.in Brooklyn and Staten Island.