Officials fear the tax would be detrimental to area schools and hospitals since all employers - public, private and nonprofit - would be subject to it. That means hospitals would have to raise fees and school taxes would rise to cover the extra cost, pegged at 33 center per $100 in salary.
Middletown school superindent Kenneth W. Eastwood told The New York Times the payroll tax would cost his district about $225,000, roughly equivalent to three and a half teacher salaries. “The thing that irks us is we’re really paying for somebody else’s problem,” he said. Only a small percentage of residents of Orange and Dutchess Counties use MTA's Metro North railroad to get to work.
Added State Sen. Steve Saland, R-Poughkeepsie: "At a time when local taxpayers are at the breaking point trying to pay their ever-increasing property taxes, the governor and the MTA want to increase that burden by instituting a payroll tax. It's ludicrous and blatantly unfair." According to Sen. Saland the tax would add a $3.3 million burden on school districts and governments in Dutchess County that would ultimately be borne by homeowners through property taxes.