Congestion Pricing Back On Table?

New York City's economic situation is teetering on the precipice as Wall Street looks to have one of the worst years on record, the real estate market is in real bad shape, and the outlook looks grim.

So with all that in mind, Mayor Mike Bloomberg's keen intellect suggests now is the time to either put tolls on the East River bridges or congestion pricing, or both.

The man is absolutely clueless. He's intent upon imposing a highly regressive tax on businesses and individuals who come into the city to do business. All it will achieve is a more intensified and long lasting recession. The revenues raised from the tolls and/or congestion pricing will not cover the lost business costs as people choose to do business elsewhere in more favorable tax climates.

It's the wrong plan at the wrong time.

Yet, many people consider Bloomberg to be a financial wizard who can shepherd the city or even the nation through a tough economic period. I don't see it at all, given that his first inclination isn't to cut spending and apply principles of fiscal austerity to failed government programs, but to tax everyone and impose new taxes and fees to increase revenues. Under Bloomberg, the city has seen its tax burden rise exponentially as the city budget swells. MTA fares continue climbing as service declines. The costs to do business continue rising, and when you wonder why businesses are considering doing business elsewhere, it comes down to the fact that it's cheaper to do business outside the City.

Imposing new tolls and congestion pricing will only accelerate the flight from the City of businesses - the very engine that keeps the local economy going. The financial industry, already battered by the toxic paper crisis, will look to reduce costs by consolidating outside the City.

Now isn't the time to impose new burdensome costs on taxpayers, including those who are least capable to afford crushing new tolls and fees, but to ease the tax burden so that people feel able to spend more (thereby increasing sales tax revenues, corporate tax revenues, and personal savings and investments).