New York Governor Advocates for Tax Hike Following Cancellation of Manhattan Toll Initiative

**Governor Hochul’s Traffic Toll Plan Hits a Roadblock, Proposes Business Tax Instead**

ALBANY, N.Y. — In a surprising turn of events that has stirred a mix of reactions across New York, Governor Kathy Hochul announced on Wednesday the indefinite suspension of the much-debated congestion pricing plan, aimed at reducing traffic in Manhattan by imposing high tolls on drivers. This decision has sparked frustration among environmentalists and public transit advocates, while suburban commuters breathe a sigh of relief.

The congestion pricing scheme, which was set to launch on June 30, would have required drivers entering Manhattan south of 60th Street to pay approximately $15, in addition to existing tolls on certain bridges and tunnels. This initiative, signed into law by former Governor Andrew Cuomo in 2019, was expected to generate $1 billion annually, earmarked for the Metropolitan Transportation Authority (MTA) to fund capital projects for New York’s struggling subway system.

However, facing backlash and concerns over the financial burden on residents amidst inflation and the city’s fragile post-pandemic recovery, Governor Hochul has shifted gears. She is now seeking legislative support for a proposal to increase a business tax, specifically a payroll mobility tax, as an alternative means to raise the necessary funds for the MTA.

This new proposal, however, is met with skepticism and opposition from lawmakers. Senator Zellnor Myrie expressed his disbelief, highlighting the contradiction in raising taxes during a cost-of-living crisis. Similarly, Senator Liz Krueger, chair of a legislative finance committee, criticized the proposed tax for ultimately burdening workers, casting doubt on the legislature’s support for such a measure.

The abrupt policy reversal and the scramble for alternative funding sources underscore the complex challenges of balancing economic recovery, environmental sustainability, and public transit financing in New York City. As the legislative session nears its close, the fate of the governor’s tax hike proposal remains uncertain, leaving the future of the MTA’s capital plan and the city’s congestion crisis in limbo.