Nov 17, 2008 7:33 pm US/Eastern
Warning Suburbanites: NYC Council Wants Your Money
Lawmakers Pushing Hard For Commuter Tax On Anyone Who Works In NYC In Hope Of Easing Budget Problems
NEW YORK (CBS) ―
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Warning to commuters and residents of the suburbs, the NYC Council wants your money in the form of a new commuter tax.
CBS
The City Council wants to balance the budget on the backs of commuters with a new tax that's a lot like an old one. They want to make people that work in the city, but live in the suburbs pay.
The state Legislature killed the commuter tax in 1999, but some City Council members think making people who work in the city pay for the services they use is better than making city residents bear the brunt of the city's budget crisis.
City budget director Mark Page seemed exasperated Monday at a City Council hearing where the head of the council finance committee demanded the reinstatement of a commuter tax to balance the budget.
"Clearly that's a tremendous revenue stream that should directly go to the city of New York," Councilman David Weprin said.
Estimates are that a new commuter tax could bring in $715 million next year.
"As New York City's budget director I'm always eager for money we don't have to pay for that we can spend and the commute tax, if we could get it back, fits that," Page said.
But after the three-hour session in which the City Council grilled him about Mayor Michael Bloomberg's budget plan Page admitted the commuter tax would be an uphill battle. More likely, he said, is a payroll tax in the metropolitan region to pay for mass transit. And Page should know. He's a board member of the Metropolitan Transportation Authority.
"A payroll tax is paid by the employer, which means it's driven by where you're working and really that's what the commuter tax was trying to do," Page said.
Council members seemed most upset by Mayor Bloomberg's desire to withhold a $400 property tax rebate check from tens of thousands of homeowners
"This is just one of those out-of-touch-with-reality moments that young guys have over there from time to time and I don't think you realize how much people who are living hand to mouth are expecting that check," Councilman Lewis Fidler said.
The problem is the homeowners' rebate will cost the city $256 million. If the city hands out the checks it has to cut the money from someplace else. In contrast, the mayor's plan to eliminate 1,000 new cops saves $80 million.
Getting back to commuters, they're already squawking about proposals to put tolls on the East River bridges. A payroll or commuter tax would have to be approved by the state Legislature.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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