A Bailout For The MTA

The dire news from the MTA in the last few months has been nothing short of frightening for straphangers. Not only would we have to pay more for a fare, but we'd get less for it. Less service, more nastiness in subway stations, less money in our pockets and more aggravation when waiting for packed subway cars. Well, if Albany lawmakers follow through with their current sentiments, a large chunk of that money will coming out of a payroll tax instead of our checkbooks.

From The NY Daily News:

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.

Even business groups have to realize that at these times, if they want to keep their workers happy, or at least complacent, they have to be able to commute to work without much of their wages going to their subway fare. A 0.33% payroll tax is a lot less of a burden to a business than $22 a month more (for the 30-Day Metrocard) to someone just trying to get by.

I know bailouts have gotten overplayed in the last couple of months, but this one that is sorely needed.