Proposed NYC Commuter Tax

April 18, 2012

Sen. Boucher to Governor Cuomo: New York Legislators should be cautious

Hartford, CT – Senator Toni Boucher (R-Wilton) today released a letter [PDF] urging the Governor of New York to block the proposed New York City Commuter Tax.

“New York legislators should be very cautious in taking this drastic step to tax Connecticut residents more,” said Sen. Boucher. “If this tax is put back on the books, we in Connecticut could decide to institute a commuter tax of our own for New York residents that work here in our state. It is not something I desire to do.”

Sen. Boucher recalls how controversial this commuter tax was when it was proposed several years ago after being repealed in 1993. The commuter tax was eventually defeated.

“Legislators including myself and our governor fought the tax then and I will fight the tax now,” added Sen. Boucher.

Connecticut workers who commute to New York City already pay an income tax and a city tax. This tax would be adding a third tax on Connecticut residents that work in New York City.

“Our commuters who work in New York City and live in Connecticut already pay New York state income taxes on the wages that they earn there,” said Sen. Boucher. “Adding yet another tax would be taxing them for a third time.”

Connecticut taxpayers are among the most heavily taxed in the nation, with a combined tax burden that includes:

  • state income tax
  • sales tax
  • luxury tax (new)
  • gas tax
  • petroleum gross receipts tax
  • car property tax
  • real estate taxes
  • conveyance tax
  • inheritance taxes
  • taxes on their pension/social security income

There are also numerous nuisance taxes and fees, thereby making Connecticut the most taxed state.

In addition, Connecticut residents have the latest Tax Freedom day in the nation (May 5 – Tax Foundation). As such, they have to work the longest to pay off their taxes before they can start earning for themselves.

Boucher notes according to our own State Department of Transportation, Connecticut now has more commuters coming into the state to work in the Greenwich, Norwalk and Stamford areas from 8 am to 9 am than those going into New York.

In addition, Boucher says New York legislators should be forewarned there are many New York based businesses owned by Connecticut residents and or run by senior officers whom reside in Connecticut. “Adding a commuter tax would be their tipping point,” she said, ultimately forcing them to relocate their businesses across the border to Connecticut.

“I would encourage all of our Connecticut commuters to write to, or email New York legislators and Governor Andrew Cuomo and let them know how you feel regarding this proposal,” said Sen. Boucher.

Senator Boucher is ranking member of the transportation of Committee