Congestion pricing paused, business tax proposed: What's next?

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Governor Kathy Hochul put an indefinite pause on the implementation of congestion pricing and is proposing another tax on New York City businesses to replace it.

"To those cynics who question my motivation, I approach every decision through one lens: What is best for New Yorkers," Hochul said in her pre-recorded video on Wednesday.But some of those New Yorkers are out in full force today – criticizing the Governor’s out of the blue 11th hour flip on congestion pricing that would have charged many drivers entering Manhattan below 60th street around $15 a day – generating billions for the MTA while reducing congestion.

According to numerous sources, Hochul is now trying to pressure the state legislature to increase taxes on businesses – even though there are 24 hours left of the legislative year.According to one source who sat through one of these closed-door meetings – the proposal went over like a "lead balloon."Lawmakers are "extremely upset", the source continued, and there is very little appetite to take up this sort of proposal.

 

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