New York City residents could face a $3 surcharge on package deliveries — with an exception for food and medicine — under a proposed bill aimed to help fund the financially insolvent Metropolitan Transportation Authority (MTA).
Assemblyman Robert Carroll proposed the bill, which would require New York City residents to pay a $3 fee for packages delivered to their homes as many businesses remain shuttered as a result of the Chinese coronavirus pandemic.
Carroll believes his proposal could help the MTA, with the surcharge generating over $1 billion per year.
In a joint op-ed with John Samuelsen, the International President of the Transport Workers Union, Carroll said the MTA is in need of a bailout from Washington, but contends that it alone will not suffice.
“The MTA’s latest forecast pegs its deficits through 2024 at a staggeringly high figure: $16.2 billion. As been widely reported, COVID has decimated ridership and other sources of transit funding. Only the federal government can deliver on such a huge scale,” they wrote, adding that MTA will need “more than a one-shot infusion of federal money to keep it safe, reliable and readily available for millions of daily riders.”
“There is one option that would raise more than $1 billion a year for the city’s subway and bus system — while also supporting small businesses and protecting the environment,” they continued, introducing Carroll’s $3 surcharge proposal.
The assemblyman argued that his proposal would help the environment while also encourage residents to shop local:
A delivery surcharge would incentive some consumers to patronize neighborhood businesses instead of reflexively ordering items online from Amazon, Walmart, Etsy or eBay. They might be reminded how local mom-and-pop stores, and bigger retailers like Bloomingdales and Macy’s, are part of what makes a city dynamic, diverse and interesting. These businesses also employ our neighbors.
A delivery surcharge will also undoubtedly encourage consumers, and the Amazons of the world, to more regularly consolidate multiple items into a single package for delivery. Instead of shipping someone a pair of new sneakers on Monday, a pair of socks on Wednesday and a toaster oven on Friday, Amazon could put them into one box and (gasp) make you wait a little. That’s one truck trip down your block by FedEx or UPS instead of three. Now multiply that by millions.
New York lawmaker Rep. Alexandria Ocasio-Cortez appeared to take issue with the proposal.
“You know why all this backlash happens when we say ‘Tax the Rich?’ Because the unquestionable norm is to tax the poor & working class. Maybe instead of taxing people who need baby formula and essential goods, we tax those who have profited billions from a global pandemic?” she remarked:
It remains unclear how Carroll expects residents to flock to support local businesses rather than ordering products online given recent coronavirus restrictions across the city, which have put a significant strain on small businesses. Over a quarter of small businesses in New York State have not reopened following the mass shutdowns in 2020.
On Monday, Gov. Andrew Cuomo (D) warned that he will either further reduce indoor dining across the state or close it altogether in New York City if hospitalization rates do not stabilize.