More info on this:
MAYOR GIULIANI AND STATE COMPTROLLER McCALL EXPRESS OPPOSITION TO ALBANY'S PROPOSED ELIMINATION OF THE COMMUTER INCOME TAX
Mayor Rudolph W. Giuliani and State Comptroller H. Carl McCall today during a press conference at City Hall announced their opposition to the State Legislature's proposal to eliminate New York City's commuter income tax. The elimination of the .45% commuter tax would cost the City an estimated $360 million annually.
"Today I'm happy to be joined by State Comptroller McCall to express my continued opposition to Albany's proposed legislation to eliminate the commuter income tax," said Mayor Giuliani. "First and foremost, I am the Mayor of New York City, and I feel it is my duty to express my strong opposition to this legislation, which would eliminate the modest .45 percent tax non-residents must pay while working in New York City. While my Administration has brought about more tax relief than any other administration -- $2.2 billion -- this tax is modest, equitable and justifiable. It is less than one-half of one percent and help support many of the City's services enjoyed by non-residents working in our City -- police, fire and transportation, to name a few. It helps to contribute to the subsidized transportation system for commuters which means they pay significantly less than the true cost of transportation."
State Comptroller H. Carl McCall said, "As the Chief Fiscal Officer of New York State and one of the fiscal monitors of New York City, I believe that eliminating this tax, at this time, in this cynical fashion, is a big mistake. While I certainly support reducing taxes, this move by the Governor and the Legislature seems more like a lesson learned in a political science class than one learned in an economics class.
"Any tax cuts in these times of surplus for the City and the State - and let's not be fooled by the good times; these times of surplus will not last forever - should be geared toward economic development and job creation, not political pandering," the Comptroller continued.
"I urge the Governor and Legislature to think about what they're doing - to think about all the reasons this is wrong. I urge them to reconsider and not pass this repeal. I believe the Governor and Legislature should spend less time on the City budget issues and more time on passing a State budget that is now 46 days late," the Comptroller concluded.
When compared to the 3.83 percent personal income tax City residents must pay, the commuter income tax that non-residents pay is a significantly lesser amount.
* A New York City resident with taxable income of $50,000 will pay $1,791.00 a year in personal income tax, while a non-resident, with a similar taxable income, will pay only $225.00 a year in commuter income tax.
* A City resident with a taxable income of $100,000 will pay $3,706.00 a year in personal income tax, while a non-resident, with the same taxable income, will pay only $450.00 a year in commuter income tax.
* A City resident with taxable income of $150,000 a year will pay $5,621.00 a year in personal income tax, while a non-resident, with the same taxable income, will pay only $675.00 a year in commuter income tax.
Some info for the stop rudy ping list to refute the "he's a tax cutting machine" line.
"Any tax cuts in these times of surplus for the City and the State - and let's not be fooled by the good times; these times of surplus will not last forever - should be geared toward economic development and job creation, not political pandering," the Comptroller continued.
"I urge the Governor and Legislature to think about what they're doing - to think about all the reasons this is wrong. I urge them to reconsider and not pass this repeal. I believe the Governor and Legislature should spend less time on the City budget issues and more time on passing a State budget that is now 46 days late," the Comptroller concluded.
When compared to the 3.83 percent personal income tax City residents must pay, the commuter income tax that non-residents pay is a significantly lesser amount.
Did I miss something? I thought Rudy was against abolishing this tax or is the comptroller complaining that this is taking time away from the state budget process?