If you live in New York, it’s no secret that the subway is in need of repairs. Subway hikes strain passengers’ wallets and at some stations, changes have yet to be made in regards to infrastructure and new technology.
Mayor Bill De Blasio has proposed a solution for that – tax the wealthy. The increase on the wealthy will go towards emergency rail repairs and low-cost bus and train rides for the poor. Last Sunday, De Blasio revealed that they would try and raise $800 million a year by increasing the tax on high-income NYC residents by 14 percent, the NY Post reported.
It has been reported in the NY Post that the tax is for those who individually are making $500,000 and married couples whose combined income totals $1 million, increasing from 3.876 to 4.41 percent.
The majority of the money will go towards upgrading the bus system and fixing the dilapidated subway system. Another $250 million will go towards providing metro cards for 800,000 New Yorkers who are unable to afford the weekly or monthly payments.
According to a City Hall press release, “The top 1 percent can afford to do a bit more – and should, because a transit system that works makes New York City’s economy strong and benefits us all.” The tax hike would take $2,700 from somone making $1 million and $8,000 from someone making $2 million.
Nothing is set in stone. Before any money goes anywhere, this proposal needs to be approved by the state legislature, which includes Governor Cuomo.
Cuomo and De Blasio have had prior financial disagreements, such as when Cuomo refused to fund his plan for instituting universal pre-k education in the city by taxing the wealthy. MTA Chairman Lhota agreed that there needs to be a stream of income in order to fund the necessary repairs. Lhota and Cuomo agreed to team up in order to match the state funding, the NY Post reported.
Cuomo’s administration mentioned the idea of raising toll fare, but that’s an idea that De Blasio quickly rejected. New Yorkers deserve a subway system that’s reliable and gets them to work on time, because when that happens, the economy thrives and the city benefits greatly.