TuG Of WAR
Use city surplus, GOP Senate boss says
John Flanagan said. “While I support increased city investment in the subway, the city already has a $4.2 billion surplus and therefore has the ability to do so with existing resources. Mayor de Blasio doesn’t need to reach into the wallets of city residents to make that happen.”
The latest proposal comes amid a fight with Gov. Cuomo, who has been pressing de Blasio to pay half the cost of a $836 million subway rescue plan.
De Blasio was greeted at his press conference by sign-holding protesters from the Transport Workers Union, which is allied with Cuomo, who controls their contract. One heckler yelled that the tax plan was a “stall tactic.”
“TWU likes the idea of taxing millionaires to sustain the subway, but that is a long-term solution. Riders are suffering right now! They can’t wait for legislation,” said TWU President John Samuelsen. “The mayor must address the immediate subway crisis immediately — and he can.”
MTA Chairman Joe Lhota said he needs the money immediately and can’t wait for the Legislature to pass a tax, which he didn’t take a position on.
“The deadline for the money is any time soon,” he said at a press conference Monday.
“I can’t wait a year to start the work that’s necessary,” he said. “This is an emergency plan put in place to stabilize the subway system . . . The proposal that the mayor put forward today did not address this issue at all.” Lhota said he’s “not opposed” to the millionaire’s tax, but insisted congestion pricing should be on the table as well. “We need to have a very sincere debate because the amount of traffic in this city is unbelievable,” he said. “I want a sustainable revenue stream for the MTA.” De Blasio said the immediate plan could be paid for if the state gives back nearly half a billion dollars it has taken from the MTA budget. His tax plan will include legally binding language allowing the money to be used only for capital improvements to transit within the city and the discount fare program.
“No bait and switch. No moving money away and never giving it back. It’s going to be very clear that it has to be used for this purpose,” he said.
But de Blasio said he’d still count it a win if Albany offers up the subway money without hiking taxes — which is what ended up happening when he tried to raise income taxes on the rich to pay for pre-K.
“Would I accept the state giving us a lot more money? Yes,” he said. “If some leaders in Albany for whatever reason are not willing to tax the wealthy, but they want to put additional money into the MTA to achieve these same goals, that would clearly still be a victory.” wealthy to make a profit. They need the millions of New Yorkers who ride the subway every day to be able to get to our business and shop there. Whether it is managing assets or managing real estate, or anything in between, we depend on the millions of workers who show up in our offices every day. They keep our businesses running. We are talking about a tax increase on the 1%. Actually, let’s be clear, we are talking about a tax on just part of the 1% — the higher-earning people within the 1%. This is a tax aimed at the people who can afford it, but also on the people who are wealthy in part because of the millions of people who ride the subway every day. Therefore, not only will this tax benefit those 10% who will get new discounted fares, but it will be a huge benefit to the wealthy business people and investors, who will be able to make more money and become even wealthier when people can get around the city more reliably. Everybody will gain from this new law. Having a fraction of the 1%, people like me, pay a little bit more in taxes is fair, because those are the people who have the most to gain as the economy of our city expands. Pearl is chairman of the Patriotic Millionaires and a former BlackRock managing director.