It has been a couple of months since the Ravitch Commission released all of its proposals to help the MTA fix its budget woes & create dependable sources of revenue. This blog & many others have gone over the plan & offered our opinions on it. My readers know that I was not impressed with the overall proposals especially the corporate tax which was one of the most ridiculous suggestions possible & anyone who understands finances would know why.
Unfortunately with the doomsday scenario deadline looming, it is with great regret that I have to hope some of these ridiculous proposals get enacted as the other result is not desirable in anyway! Democratic leaders in Albany seem to be willing to go along with the tax proposal & possible other measures which could starve off the ultimate doomsday scenario. Glenn Blain of the New York Daily News has more in this report:
Senate Democrats are ready to support a new payroll tax to help rescue the MTA.
Majority Leader Malcolm Smith, who previously opposed imposing new taxes, said Democrats would support the proposed tax if the business community agrees to it.
“It’s really the last thing we want to take a look at, however, this is a classic example, I think, of shared sacrifice,” Smith said Thursday.
The tax of one-third of 1% is a key component of the financial bailout plan crafted by former MTA Chairman Richard Ravitch. It would affect payrolls in New York City and the other counties the MTA serves.
Smith noted that most business groups, including the Partnership for New York City, have expressed support for the tax. Ravitch’s plan, which has the support of Gov. Paterson, is intended to plug the MTA’s $1.2 billion budget gap and head off draconian fare hikes and service cuts.
Assembly Speaker Sheldon Silver, a Manhattan Democrat, also favors the payroll tax, projected to generate $1.5 billion a year. The fate of another component of Ravitch’s plan – placing tolls on the East River and Harlem River bridges – remains uncertain.
Click here for the complete report.
So in the end even though some of the proposals are downright ridiculous, they clearly are the lesser of two evils. With that in mind, I have to support the passing of at least some of the proposals as our transit system needs the money & in the end that is the most important thing.
xoxo Transit Blogger