Hochul Wants a Payroll Tax Boost to Fund NYC Subways, Transit

Governor Kathy Hochul wants to increase a payroll tax on businesses in the New York City area served by the Metropolitan Transportation Authority’s network of subways, buses and commuter rail lines to help fix the transit agency’s operating deficits.

Hochul’s plan, part of her state budget proposal that she released Wednesday, would provide a combined $1.3 billion of new revenue for the MTA each year. The MTA faces a $600 million budget gap this year that’s projected to grow to $3 billion in 2025 as federal pandemic aid runs out.