New York’s ‘Congestion Pricing’ Economy
By Paul Tice
Barring a last-minute court ruling blocking the plan, New York state, working through the Metropolitan Transportation Authority, on June 30 will start charging a “congestion” tax on every vehicle entering Manhattan south of 60th Street.
The proceeds from the new toll—the first of its kind in the U.S.—are earmarked for upgrades to the city subway system and other public-transportation projects. Estimated to bring in $15 billion over five years, congestion pricing represents the single largest funding source for the MTA’s current $55 billion capital spending program.
Most of the legal challenges to the new vehicle charge that have been filed to date—mainly by the state of New Jersey and plaintiffs from adversely affected city neighborhoods—have been aimed at getting a piece of the new tax pie.
Read the full The Wall Street Journal article.
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Paul Tice is an Adjunct Professor of Finance at NYU Stern.