REPEAL THE REGRESSIVE AND UNFAIR SHAM CONGESTION TAX AND REPLACE IT WITH A TAX THAT TARGETS THE REAL CONGESTION CULPRITS

In its current form, all this so-called “congestion tax” will do is make it less affordable and less possible for working people to live without cars of their own and harm the livelihood of 100,000 poor immigrant working families. Meanwhile, the big businesses that clog our streets with trucks and the city’s wealthiest don’t have to pay the tax at all. After all, those who rely on private cars and drivers are exempt.

New York state’s “Congestion Tax” is a disaster. It is a regressive tax that will harm the more than half a million working families in our city who rely on for-hire vehicle service for transportation or for their livelihoods without even putting a dent in congestion or the MTA shortfall. The new taxes will be particularly harmful to app-based for hire vehicle riders, whose trips are already much more heavily taxed than taxi trips, and for-hire drivers who are already struggling to make ends meet. Our city should demand the legislature repeal this sham tax and replace it with a fair tax that targets the real culprits of congestion.

With the new state tax on top of existing taxes, Uber and Lyft rides will be taxed $5 on the average $20 trip starting in January. For taxis, which are exempt from sales tax, $3 of such a trip will go to MTA taxes, with an additional $0.30 going to an improvement surcharge for medallion owners. Meanwhile the real culprits of congestion – the delivery, commercial and construction vehicles that block the flow of traffic – get off scot-free.

To call this a congestion tax is a lie. Experts agree the new tax will not impact congestion as it only targets one segment of vehicles: for-hire vehicles. Which is exactly the WRONG segment to target.

Riders of for-hire vehicles are working people who are already paying more than their fair share of taxes – including over $260 million in sales tax alone on FHV trips in 2017.