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Carlucci: MTA Payroll Tax Reduction Aids Small Businesses

New York State Senator David Carlucci (D-New City) visited Adam Lipson at the office of his Pearl River business to discuss the benefit of the reduction in the MTA Payroll Tax.

Adam Lipson's company, Network & Security Technologies, calls Pearl River its home, but his employees can work from just about anywhere.

That is one reason four of his 17 employees live in New York and why the reduction of the MTA Payroll Tax this past week makes a difference in future hiring.

"We make decisions based on cost of work force, where we want to have people and where our clients want us," Lipson said. "This will make it much more attractive for us to hire New York State employees. It is desirable to have our people in New York where we are headquartered. Where it is difficult, where it is onerous for us to have employees, and expensive, we tend to avoid hiring people."

State Senator David Carlucci (D-New City) visited Lipson to discuss the vote by the state legislature to eliminate or reduce the MTA payroll tax for small business owners.

"We need more Adam Lipsons in our economy," Carlucci said. "That's what is going to turn around our economy. When you hear from the business-owner's mouth that (the MTA payroll tax) is another reason we would hire someone in another state or region or country, taxes like this are killing the economy."

According to Carlucci, over 700,000 entities will no longer have to pay the MTA payroll tax. He is in favor of eliminating the tax entirely, but said that this was the compromise the legislature settled upon.

"The MTA payroll tax is a job-killing tax, one of the worst pieces of legislation that has passed through the legislature," Carlucci said. "One of the main reasons I ran for the state senate was so we could repeal this job-killing tax. It is a perfect example of New York doing the wrong thing. We always talk about supporting small businesses. We always talk about putting people to work, then we do the opposite with the MTA payroll tax."

Private schools will also now be exempted from the tax. Public schools, which had to pay it and wait for reimbursement, will also now be exempt.

One way it helps them, and small businesses, is to eliminate the administrative costs of dealing with the tax.

"This legislation makes it more affordable for me to operate my business here in Rockland County," Lipson said. "In this economy, every little bit helps. I want to thank Senator Carlucci for fighting for businesses like my own."

The MTA payroll tax currently generates $1.4 billion for the MTA.

"This is not a sustainable source of revenue," Carlucci said. "The MTA can talk about its budget all they want, and the money they need. We can debate that. But the bottom line is, if you need one and a half billion dollars, this is not the way to do it. It's costing us jobs and it's costing us revenue. In the end, we are actually going to make less revenue."

Beth Abrahamson December 11, 2011 at 10:26 PM
If 1.4 billion dollars is not a substantial amount of money to the MTA then repeal the tax and put it back into the hands of the businesses and employees to whom it is a substantial amount to have to pay for services many of us don't even use.
Mike Hirsch December 12, 2011 at 01:10 AM
David Carlucci, having never run a business, has no idea what he is talking about. This is not a job killing tax. A real job killing "tax" is the cost of healthcare. As a small businessman, I will not hire anyone who requires health care coverage. If he really wants to make a difference, rather than pay lip service to his constituents, let him introduce legislation to address the healthcare burden on private industry and rein in the healthcare benefits paid to our public "representatives" and public sector unions, which we all subsidize through our tax burden. Why should a state senator enjoy health care benefits that most private sector workers cannot afford?
Lance Dugby December 12, 2011 at 01:31 AM
How about eliminating mandatory Arbitration which is a fixed scheme that enables our cops to get 81 days off a year with salaries defying reality. The Clarkstown Police Chief and some higher ranking officers in Clarkstown makemore than the Secretary of Defense. Cuomo and Carlucci want taxes to be held to 2% increase a and do or say nothing when Vanderhoef, Cornell and Shoenberger raise taxes by 30%. That puts my family 28% in the hole SENATOR!.
Lance Dugby December 12, 2011 at 01:43 AM
Carlucci must have been watching Chucky Schumer. He spends more time talking to the press but does nothing for the taxpayer. And now I hear he will support the sales tax increase and the bond issue. More dollars are going out of our pockets since Carlucci is in office. We have Vinny Reda to thank for putting the worthless Vanderhoef on the ballot to run against this kid.
Mike Hirsch December 12, 2011 at 02:20 PM
Thank you Lance. Please come to our Holiday Party at Rocco's this Thursday night and introduce yourself. The information is on our website www.clarkstown taxpayers.com Also please vote on Wednesday at the New City Library for our VP, Frank Grandel, who is running for the library board. Frank is a small businessman in New City, and will bring that perspective to the board.

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