NYS Court Of Appeals Delivers Blow To Long Island’s Self-Employed


by Long Island Attorney Paul A. Lauto, Esq./www.liattorney.com

The NYS Court of Appeals recently upheld the imposition of the MTA tax as it applies to, among others, self-employed individuals of Nassau and Suffolk Counties making over $50,000 per year.  This decision effectively adds insult to injury for the Long Island small business person and applies whether or not the mass transit system is being utilized.

Many can attest to the fact that running your own business on Long Island, is a very difficult task in today’s economy.  The self-employment (SE) tax alone is a huge financial burden to the self employed, as it requires twice the payment for social security tax (12.4%) than that paid by regular employees (6.2%).  Combined with Medicare, the total SE tax comes to approximately 15.3%.  Now add the unjust MTA tax of .34% of net earnings on top and it stings like salt in a wound.  This especially rings true for the self-employed of Long Island who do not even use any of the services provided by the MTA.

One could credibly argue that the MTA tax was created solely to bail out the MTA of its financial troubles, as it raises over one billion dollars per year.  Further, that self-employed small business persons, who are the back bone of American business, should not have to bail out the MTA for its failed business.  Wouldn’t it be nice if the self-employed could create a tax on others to solve their financial problems?  But, it doesn’t work that way.  The self-employed of Long Island and around the country are getting hammered on every turn, from creative new taxation to back breaking increases in health insurance premiums.  If our government doesn’t stand up for the self-employed soon, it may find one of its main life blood sources depleted with little or no chance for revival.

Long Island Lawyer
Paul A. Lauto, Esq.


Paul A. Lauto, Esq.
Paul A. Lauto, Esq. completed his undergraduate studies at SUNY at Stony Brook in 1987, with a major in political science and a double minor in socio-legal studies and moral-legal issues in philosophy. Mr. Lauto received his Juris Doctor from New York Law School in 1990 and was admitted in 1991 to practice in the courts of New York State, as well as the Eastern and Southern Districts of the United States District Court.

Mr. Lauto has primarily focused on personal injury throughout his career and previously worked as in-house counsel to a major insurance company. In 2002 Mr. Lauto established Paul A. Lauto, PLLC, with a primary concentration on personal injury, all types of accident cases, Wills, Trusts and Estates and more. Paul is the sole author of his Scales of Justice blog, which provides updates and information about current legal stories in the news and how they may affect our lives. Mr. Lauto prides himself on providing clients maximum results, with a high level of personal attorney service and attention that is uncommon in the profession. For more information please visit http://www.liattorney.com