WHAT IT IS
- August, 2017: NYC Mayor Bill de Blasio (D) proposed raising city income tax from 3.9 to 4.4 percent to repair the failing subway system and help subsidize the fare for low income riders.
- This tax targets less than 1% of NYC tax-paying population (32,000 New Yorkers), or those earning more than $500,000 a year and couples earning more than $1 million a year.
- Income from the “millionaire’s tax” could raise $700 million in the first year, with more than $820 million per year by 2022.
WHY IT MATTERS
Are high income earners willing to live in a city with a higher tax carry for an undetermined period of time, or will they simply file residency elsewhere?
WHERE WE ARE NOW
- The proposed tax needs to pass the state legislature, with Republican’s controlling the Senate.
- De Blasio’s plan includes mandating the state to pay $8 billion toward the authority’s current long-term plan for repairs.
- The “Summer of Hell” continues, with Governor Cuomo declaring a state of emergency in June on the 113 year old public transit system, which handles 6 million riders each weekday.
THINGS TO THINK ABOUT
- Seattle’s successful implementation of discounted public transportation fares for low income riders of city buses and light rail.
- Would the system be better run as a private organization?
- How can we prevent a state of emergency from occurring throughout our country’s crumbling infrastructure?