Congestion Pricing Goes To Albany

I have written extensively on the subject of congestion pricing, and call it what it really is. It's yet another tax on people who enter the New York City metro area during the day. The plan, which would impose $8 per day on vehicles entering the area of Manhattan below 60th Street, passed the NYC City Council by a 30-20 margin.

The plan now goes to Albany, where they will have the final say on whether to impose the plan that would make the City eligible for nearly $350 million in transportation aid to implement the program.

Mrs. Lawhawk had pointed out that it would have been far better use of the money to put the money into actual transportation projects - like rebuilding roads and bridges, than creating another bureaucracy and transportation boondoggle that will cost more than the politicians and experts expect.

Meanwhile, New Jersey Governor Jon Corzine says that he's going to fight the imposition of the tax on New Jersey residents. This article claims that the congestion pricing scheme will further raise tolls paid by NJ drivers crossing into Manhattan to $11 from the just raised $8. It was my understanding that as the Port Authority just raised tolls to $8, that New Jersey commuters like myself were pretty well insulated from the current imposition of congestion pricing. The congestion pricing scheme would impose a toll of $8, with the difference between existing tolls and $8 going to fund transportation projects in the City. If the Star Ledger story is accurate, then New Jersey drivers are truly going to get screwed as their tolls will nearly double in the span of a year.

What's the economic impact of that on regional competitiveness? Less traffic might occur, but how much of that will be due to businesses going to more favorable tax climates and not to more efficient driving habits? At a time when the city and its financial industry are in turmoil, why impose yet another fiscal hit on those trying to do business in the City?

UPDATE:
Gothamist has a handy dandy map of how the city council voted compared with the districts represented. Funny how those closest to Manhattan voted for the plan, while practically everyone else opposes it. There's a good reason for that - those living in the districts furthest away from Manhattan have the fewest options to get into Manhattan or don't live close to subway lines and have to drive because it makes no sense to spent hours commuting when driving could take half as much time.