The MTA Tax Must Go! Bill Schoolman, owner of Classic Coach and Hampton Luxury Coach is leading the fight with a lawsuit claiming it’s unconstitutional.
“Bill Schoolman has been successful as a businessman and in that pursuit he has shown himself to be an innovator. He came to LIMBA this morning with a message that is difficult to refute or ignore. He accused the MTA of having a 45-year history of fiscal irresponsibility.
“The MTA tax was recently imposed on businesses of all kinds, not for profits, municipalities, and in fact any entity that has employees. Mr. Schoolman is appalled by the tax, and believes it should be repealed. However he has no faith in the legislature in rescinding the tax, but he believes a lawsuit could be successful. He then went into some detail as to why we should expect very little from the legislature. The biggest factor is that the NYC politicians want the tax and they would be able to prevent a 2/3 vote it would take from happening.
Schoolman bases his case on the apparent unconstitutionality of the legislation that created the tax. After researching the state law and the authorities law Schoolman concluded the state constitution was violated 5 times, and once under the Public Authorities law
After focusing some intention on the viability of the lawsuit, Schoolman asked the question, “How is the money at MTA spent”. He then cited several bizarre examples for the audience on how they have spent money in the past
Example 1. A train mechanic had a gross income $283,000. By manipulating the overtime rules he was able to generate that income so that his retirement can be boosted to $10,000 per month.Mr. Schoolman pointed out that the maximum labor cost in the transportation business should be 41% or less, at the MTA it is 67%
Example 2 The MTA uses dogs as part of their security program. The spent $7 million on a new dog house.
Example 3 The MTA is building or has built an employee lounge at Grand Central Station costing $20 million
Example 4 The MTA built a headquarters building in Manhattan that was scheduled to cost $145 million, but the final cost was $845 million…” Read more here: The MTA Tax
And here: the unconstitutionality of the MTA tax
And here: the complaint