Republicans say payroll tax's cost is too high

State Senate Republicans hit back Thursday against the payroll tax Democrats passed as part of the Metropolitan Transportation Authority bailout, which they say would levy an unfair burden on property

News 12 Staff

May 15, 2009, 2:59 PM

Updated 5,548 days ago

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State Senate Republicans hit back Thursday against the payroll tax Democrats passed as part of the Metropolitan Transportation Authority bailout, which they say would levy an unfair burden on property taxpayers.
The MTA bailout that passed the state Senate last week lowered fare hikes originally proposed by the transportation agency. The payroll tax included in the bill taxes employers, but schools will be reimbursed.
Republicans say if local governments have to pay the payroll tax, property taxes will have to go up. State Senate Finance Committee Republicans say payroll taxes on county, town and village levels will total about $5 million in Nassau and about $4.5 million in Suffolk. They are urging Democrats to exempt municipal governments from the tax.
"Each local government will get taxed for this payroll tax,? says state Sen. Kemp Hannon (R-Garden City). ?So how do they raise their money? They don?t have a magic well. It goes to the property taxpayer."
At a news conference Thursday, the Republicans blamed Long Island's Democratic senators, who voted in favor of the plan. A spokesman for state Sen. Craig Johnson (D-Port Washington) told News 12 Long Island ?Sen. Johnson stood up and successfully fought for a plan that protects schools and taxpayers,? and that ?Republicans refused to offer any solutions to a very real problem.?


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