New York City's Metropolitan Transportation Authority (MTA) is facing a staggering $33 billion budget shortfall, and new taxes are on the table to close the gap. Lawmakers in Albany, acutely aware that the recently implemented congestion pricing is projected to raise $15 billion—insufficient to entirely bridge the budget deficit—are considering a range of tax increases. According to FOX 5 New York, options like a millionaire’s tax or raising the mobility tax on employers have been proposed early in the discussions.
State Senator Michael Gianaris succinctly put the situation, "Well, math is math. And so either we're going to find new sources of revenue to fill this hole, or the hole will not be filled." With lawmakers saying it's not a matter of if but who will shoulder the financial burden, they are faced with the unenviable task of finding the balance between necessary projects for city vitality and the fiscal strain on taxpayers—already feeling the pinch from congestion pricing rates of up to $9 to enter Manhattan's Central Business District. This was shared by CBS News New York.
The pushback from local business owners like Richie Romero, who runs the Chelsea speakeasy restaurant Sushi By Bou, illustrates the resistance to any new financial impositions. Frustrated with the mounting costs, Romero told CBS News New York, "As business owners, we can't afford it. That's the problem." To soften the blow of the congestion tax, Sushi By Bou has been offering a $9 discount to customers to compensate for the new charge.
Critics argue that the MTA should tighten its operations before putting its hands into New Yorkers' pockets. New York State Comptroller Thomas DiNapoli put it, "I hope the MTA leadership takes all its time and energy that have been put into advocating for congestion pricing and instead look at how could we fulfill our promise to taxpayer, to those who use the system and say this is how we are maximizing efficiency." This sentiment was echoed by State Sen. Jack Martins who, responding to concerns about fare evasion, suggested targeting fare evaders prior asking citizens for more money. His remarks were captured by FOX 5 New York.
While the proposed solutions are myriad, a prevailing theme among proponents is that whatever form the new revenue takes, it must distribute the financial burden fairly. Kathryn Wylde of the Partnership for New York City opined on CBS News New York, "It has to be broad based and fair, and the entire state should share in this responsibility. It shouldn't just be on New York City and its suburbs." The new tax package is expected to be part of the state budget due by April 1.
