Paterson Recommends Less Severe MTA Fare Hike-- And Tolls for East River Crossings

2008_12_subway.jpg
Photograph by awgreen on Flickr

With the MTA in dire financial straits, there's been lots of talk about ways to save the MTA, from a 23% fare hike and service cuts to tolling the now-free bridges over the East and Harlem Rivers. Now, Governor Paterson is reviewing a plan with recommendations on how to help the MTA and likes the ideas it offers so far. The plan, submitted by the Ravitch Commission, will be made public today, but the ideas apparently include:

  • An 8% fare increase (vs. the 23% on proposed earlier)--it's unclear how that would impact subway/bus base and unlimited Metrocard fares.
  • Tolls for the East and Harlem River Bridges
  • A corporate payroll tax, paid by businesses in the region, of less than 1%.
While it's unclear how lawmakers might react to a corporate tax (and some "told the Post that the idea was a non-starter"), Paterson said, "As an alternative to a fare hike, I think it's very viable.. [the commission] found a way to reduce the fare increases to 8% by distributing the responsibility among all those who use the service." He added, "We are in a very difficult fiscal time, and so it's either going to be fare hikes, or it's going to be tolls and a combination of payroll taxes."

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At one point I moved to VA but still worked in DC, they still charge DC tax on my paycheck, do they do that up here for all these people that work in the city but live in the burbs? If not, why not?

They suspended the 'commuter tax' a while back, with the idea that it would encourage more businesses to set up shop in the city. I'm all for bringing it back.

I understand that most people will be outraged by the East River tolls, but other bridges have tolled, so this appears to be more fair and perhaps it will ease congestion downtown since people drive there to avoid tolls.

On the other hand, I don't think a payroll tax is a good idea right now. It will encourage companies to layoff workers to save a buck. I do think the reinstatement of the commuter tax makes more sense. Have the worker decide if it's feasible to commute to NYC to work or if he/she should look for work elsewhere. If he/she chooses the latter, then someone from NYC could take that open position.

Further, the MTA should consider proposals to ask the State to create a lotto game just for transit projects. Finally, as many people on this site have mentioned recently, the MTA should consider corporate sponsors for subway stations.

Can't wait to see how traffic will flow once they put tollboths on the East River bridges. I totally agree the commuter tax should make a comeback.

@3 I'm 99% certain that Brooklyn Bridge charter says there can never be a toll on that bridge.

@4 It's going to be a camera/e-z pass only system, no toll booths will be placed at the bridges.

Amazing photograph...

The two gents seated nearly mirror each other, and the briefcase guy seen through the coupling centered himself perfectly. Even the flotsam on the platform in the foreground agrees with the composition.

Bravo, awgreen, on a snapshot well done.

Is it just too much to ask for them to actually trim the enormous fat from the MTA and to actually automate the system like almost every other major metro rail system in the word outside of the 3rd world?!
I mean the bottom line is people in NYC pay the most taxes, the highest tolls, the largest business taxes, etc. How many more people and businesses do they want to chase out of the area? Particularly during these times.

#5, I'm sure the City can pass a law that amends the Brooklyn Bridge Charter. What was a noble idea in 1911 is unfortunately, not appropriate in 2009.

#1, if you live in one of the five boroughs, you have to pay the City tax. If you live outside those boroughs - Long Island, West Chester, NJ, CT, etc. you are NOT subject to City or commuter taxes. Guiliani repealled the commuter in 1999, which forfeited billions of dollars that could have been used for the 2nd Ave subway, the new Penn Station or just maintaince for MTA services.

Guiliani oppposed the repeal the commuter tax. The mayor of NYC does not have such powers.

The tax was repealed by the state legislature in 1999 because Joe Bruno and Shelly Silver both thought the repeal would benefit their parties candidate in a special election for the State Senate in Rockland and Orange counties.

9, that is not entirely true. if you work in NYC a portion of the payroll tax for your salary goes to NYC.

Taxes have unintended consequences.

Unfortunately, politicians, especially Democrats, do not understand this.

I'm fine with raising fares, but the tolls and payroll taxes on this mark the flurry of new taxes and tax hikes we'll face in 2009 and 2010.

It sounds hyperbolic, but I think this marks the beginning of the end for NYC. It's eventually going to become too expensive to conduct business here, and existing residents on their government subsidies or fixed incomes will be forced to move out.

#11, that's on your employer, not the individual. I think #1 was inquiring about City and commuter taxes.

#10, I stand corrected. It was the Pataki Puppet that repealled the law.

Right #14, I didn't know there was even a commuter tax here at one point. I live in the city, so I get the taxes either way, but I remember having to file dc tax returns when I lived down there even when I moved out of DC. Seems like a good idea to me. Dc is a little different though, I'd bet good money that the % of people that work in DC but live outside of it is higher than in NYC, per capita, but I could be wrong.

Long Islanders already need coaxing to go into Manhattan, do they really want to make it more hyperinsulated than it already is?

Albany is swallowing its words.

People, does anyone understand how taxes work?
You already PAY for the MTA. Its called State income tax. The MTA has nothing to do with the city of NY. The MTA is a STATE agency. Say it with me now....STATE AGENCY. Any tolls/taxes of any kind has to be approved by the STATE legislature.
And that is never going to happen.

everyone in this state also pays the MTA's extortion fee every time you buy anything at all as they also take a direct piece of the sales tax. They need to make some major cuts to their personnel and pension costs before I would give another cent to them.

Tolls on the free bridges is not going to happen, so for all those who wish it, don't. Free passage within the city is fundamental to an open and economically diverse society. Just as Manhattan people can come to Brooklyn, the reverse is true, has been true and will always be true. No one borough is more or less important, and no group of people are either.

Stop the toll gripe.

#19 - How do you figure "Free passage within the city is fundamental to an open and economically diverse society. Just as Manhattan people can come to Brooklyn, the reverse is true, has been true and will always be true."? FAR FAR more people travel between the boroughs by mass transit than by cars, and guess what - we pay!! Car drivers are a minute percentage of those traveling between the boroughs, and it is about time they pay for the congestion, pollution and diminishment in quality of life that they cause. For the most part, only those who can afford to not take mass transit choose to drive.

Moron, you pay b/c you are using a service. If you dont want to pay, dont use the service. You have feet right? Walk.

'and it is about time they pay for the congestion, pollution and diminishment in quality of life that they cause'.

Liberals love taxes. They love making people pay. The think the answer to everything is to tax people. I never knew my car diminshed the quality of life for someone. Care to be any more dramatic?

Of course your car diminishes the quality of life -- to a certain degree, all vehicles do! They pollute, they make noise, they block the streets... .I mean, c'mon! It's not rock science.

Every lazy jerk from Long Island who choosed to drive into the city instead of take the LIRR -- or Brooklyn/Queens resident who just can't be bothered to take the subway -- is now going to have to pay for that luxury. Yep, seems fair to me (especially since NJ is already doing it!).

#21, liberals like better services, efficiency, and fairness rather than letting everything erode to the point of no return. That costs money. Unfortunately, you can't give tax costs and increase or even maintain a normal level of spending. Too bad certain people never got that memo.

BTW, Florida is going to crush the Tide on Saturday.

#21, liberals like better services, efficiency, and fairness rather than letting everything erode to the point of no return or simply take away services and leave people in the cold. Yes, that costs money. Unfortunately, you can't give tax breaks or special preferences to certain boroughs AND increase or even maintain a normal level of service. Too bad certain people never got that memo.

BTW, Florida is going to crush the Tide on Saturday.

Putting tolls on free bridges is ridiculous. There is just no way that you can set up toll booths at the Manhattan, Brooklyn and 59th st. bridges. The amount of traffic that would spill into the residential areas and beyond would be uncontrollable.

This whole thing stinks of mismanagement.

#20 are you kidding me? There are more cars on the road now than 10 years ago. People who live in areas under served by mass transit will drive. That's the fault of the sytem, not the individual.

#21, liberals like better services, efficiency, and fairness rather than letting everything erode to the point of no return or simply take away services and leave people in the cold.

Name me one government bureaucracy that is more efficient than any other business in the private sector?

And fairness??? Haha. How do you think ppl like Rangel, a Democrat himself, get cheap rent while every other sucker pays market value?

A. Excessive regulation that leads to loopholes for the rich, and agencies that are ripe for corruption.

Smaller government is always much better.

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