Governor Kathy Hochul’s proposal to increase a payroll tax on businesses was quickly rejected by state lawmakers, creating uncertainty for future mass transit funding.
The tax hike was suggested to replace the revenue from the now-shelved congestion pricing plan, which would have charged drivers $15 to enter Manhattan below 60th Street. The congestion pricing plan was expected to generate about $1 billion annually for the Metropolitan Transportation Authority’s $15 billion capital plan.
State lawmakers, led by the Democratic-majority Senate, deemed the tax hike a “non-starter,” with Long Island State Sen. Kevin Thomas calling the idea “insane” during a closed-door meeting. With the legislative session ending soon, Hochul’s proposal faces significant political resistance and may not proceed, leaving mass transit improvement projects in limbo.
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