In yesterday’s Star-Ledger, its Editorial Board printed an opinion titled “On congestion pricing, New York is Right.”((The editorial also appears as a subscriber exclusive on NJ.com under the title “On congestion pricing, New York is right, NJ is wrong.” I note that “New York” is spelled out but New Jersey is only identified by initials.))
Under congestion pricing New York will charge drivers to enter the central business district (south of 60th Street) ostensibly to encourage and subsidize mass transit. Lots of details still to be worked out (or at least publicly revealed).((There is a pretty good explanation of everything here.)) Much of the money will be paid by New Jersey residents for the privilege of working in, and paying taxes to, New York. All of the money will be spent by New York.
Not only is this another example of New York getting the better of New Jersey every time((See Paul Mulshine’s column on that topic here.)) but also of SEP((I introduced the concept of “someone else is paying” in a post almost two years ago.)) increasing the effective demand for whatever the funds wil be used for.
Jay Bohn
May 15, 2023