By Heather Grossmann
DNAinfo Reporter/Producer
MANHATTAN — Mayor Michael Bloomberg is furious about Gov. David Paterson’s proposal to increase a “mobility tax” on New York City businesses.
The tax is levied on businesses and self-employed individuals located in the five boroughs and commuter counties on Long Island and upstate served by the MTA.
Paterson’s plan, which is an amendment to his 2010-2011 budget proposal, would raise the tax from .34 percent of payroll to .54 percent for city businesses, and lower it to .17 percent for all businesses operating outside of the city.
“This will ensure a more equitable distribution of tax liability in line with the fact that New York City is the destination for over 90 percent of weekday ridership,” Paterson said in a statement.
But Bloomberg, who is already unhappy with the governor’s budget proposal, was having none of it.
“First the Governor proposed a state budget that slashes support for New York City but not the suburbs, and now he proposes to wallop city businesses with more taxes while lightening the load for businesses in the suburbs,” the mayor said in a statement Monday evening.
“The idea that the State can spare the suburbs while sacking the City is terrible economics, grossly unfair, and contrary to every principle of good regional development.
I will work night and day with our City’s delegation in Albany to stop this wrongheaded proposal from moving forward.”
