NYC Businesses React to Massive Transit Overhaul and Tax Hike

New York businesses are threatening a mass exodus as Governor Hochul’s $68 billion MTA cash grab hits them with crushing new payroll taxes while the transit system remains a dangerous, inefficient mess.

At a Glance

Governor Hochul’s plan to increase payroll taxes to fund the MTA’s $68 billion capital plan has sparked outrage among NYC businesses
Large companies in NYC will see payroll tax rates jump from 0.6% to 0.895%, potentially affecting 5,000-10,000 businesses
Business leaders warn the tax hike will accelerate the exodus from New York, leading to job cuts and decreased investment
Despite the tax increase, the MTA’s plan remains $3 billion short with no clear plan to close the gap
Critics point to the MTA’s history of financial mismanagement and rising crime as evidence against rewarding the agency with more taxpayer money

Another Tax Hike Driving Business Out of New York

In a predictable move from the progressive playbook, New York’s Democrat Governor Kathy Hochul has decided that the solution to fixing the financially troubled Metropolitan Transportation Authority is to reach deeper into the pockets of businesses already struggling with the state’s crushing tax burden. The plan to raise payroll taxes on larger employers to fund the MTA’s $68 billion capital plan is meeting fierce resistance from the business community, which has endured years of watching their tax dollars disappear into the black hole of government inefficiency.

The new tax scheme will hit NYC companies with payrolls exceeding $10 million particularly hard, raising their payroll tax rate from 0.6% to 0.895%. Companies in surrounding counties won’t escape either, with their rates jumping from 0.34% to 0.635%. This isn’t just pennies we’re talking about – it’s a significant financial burden that will affect between 5,000 and 10,000 businesses that provide thousands of jobs to New Yorkers. And in typical progressive fashion, the government is picking winners and losers, with smaller businesses getting tax reductions while larger employers foot the bill.

Fuming NYC businesses warn of exodus over Hochul’s plan to hike payroll taxes to pay for MTA’s massive $68B capital plan https://t.co/HroWecgxti pic.twitter.com/7hFKZyZi9f

— New York Post Metro (@nypmetro) April 29, 2025

Business Leaders Sound the Alarm

Prominent business leaders aren’t mincing words about what this tax hike means for New York’s future. Billionaire businessman John Catsimatidis, who employs thousands across his various enterprises, delivered a stark warning about the consequences of this latest government cash grab: “The exit from New York state will be greater. It will lead to fewer investments from business people in New York.”

“The exit from New York state will be greater. It will lead to fewer investments from business people in New York.” – John Catsimatidis

Former U.S. Senator Al D’Amato was even more blunt in his assessment, calling those behind the tax hike “ridiculous” and “stupid jackasses.” This isn’t just colorful language – it reflects the genuine frustration of business owners who have watched New York’s tax-and-spend policies drive a mass exodus to more business-friendly states like Florida and Texas. With each new tax, the incentive to relocate grows stronger, taking jobs, investment, and tax revenue with them. It’s a self-defeating cycle that Democrat leadership seems determined to accelerate.

Transit is ALWAYS a bottomless pit for taxpayer money. There is NEVER ENOUGH! https://t.co/TZHzvHWojq

— Nashville Tea Party (@NashvilleTea) April 30, 2025

Rewarding Failure and Mismanagement

What makes this tax increase particularly galling is that it rewards one of the most poorly managed public authorities in the country. The MTA has a long history of financial mismanagement, bloated budgets, and inefficient operations. Even after this massive tax hike, the plan still comes up $3 billion short, and MTA officials have been suspiciously quiet about where those additional “savings” will come from – likely because they have no idea themselves. It’s a classic case of throwing good money after bad.

“The MTA is the worst-run public authority in the nation and can’t even keep commuters safe, with felony assaults rising 9% this year.” – Rep. Mike Lawler

Representative Mike Lawler didn’t hold back in his criticism, highlighting not just the MTA’s financial incompetence but also its failure to maintain basic safety for commuters. With felony assaults up 9% this year, riders are paying more for the privilege of risking their safety. Yet Governor Hochul believes businesses should foot the bill for an agency that can’t deliver on its fundamental responsibility to provide safe, reliable transportation. It’s a perfect illustration of how Democrats approach governance – extracting more money from productive sectors while delivering diminishing returns on essential services.

The Bottom Line

This payroll tax hike is yet another example of the destructive economic policies that have sent New Yorkers fleeing to states with lower taxes and better governance. Instead of addressing the root causes of the MTA’s financial troubles – bloated pensions, inefficient operations, and wasteful spending – Hochul and her Democrat allies have chosen the easy path of raising taxes. This may provide a temporary financial band-aid, but the long-term consequences will be devastating as more businesses decide that enough is enough and relocate to states that appreciate their contribution to the economy.

“Ridiculous. Stupid jackasses.” – Al D’Amato

Senator D’Amato’s colorful assessment may lack political correctness, but it perfectly captures the sentiment of New York’s business community. How much more can businesses endure before the exodus becomes irreversible? Governor Hochul seems determined to find out, continuing the destructive policies that have made New York a case study in how not to govern. Until leadership in Albany recognizes that businesses are not bottomless ATMs to fund government incompetence, the state’s economic decline will continue while Florida and Texas reap the benefits.