A Hudson Tunnel That Goes One Way - NYTimes.com.
Yes! Mr. Forsburg has the right idea ... but then he veers off into thinking-inside-the-box, concentrating on income taxes. He makes the valid point that:
But he ignores the important reality that the big winners in the construction of such a tunnel will be not those whose commutes are shortened or made bearable by the faster transportation and more options for getting from NJ to NYC, but those whose homes and commercial properties rise in value because of their increased accessibility to Manhattan.
A NJ landlord need never visit NYC to reap that benefit! A NJ homeowner need never visit NYC to see their property value -- the amount they can sell it for, the amount they can borrow against it, the amount they can rent it out for -- rise as a result of public spending on the tunnel. A NJ commercial property owner will see his land value rise along with the residential property owners.
And yet we don't ask them to contribute to funding that investment. And we seem to think it is their good planning or good luck or foresight which brings them the windfall.
And the fellow who doesn't own the land on which he lives, or the land on which he works, ends up paying more in rent to his landlord, not because the landlord has provided anything additional, but because the community has -- AND then is asked to pay via a tax on his wages for the infrastructure improvement.
Does the word sharecropping ring a bell?
No wonder we've not got as many jobs as we need! No wonder we've got unaffordable rents and unaffordable housing! No wonder mortgage lenders get rich! No wonder we get wealth and income concentration!
Those who would benefit should pay the cost.
Natural public revenue.
The solution here is simple: those who would benefit should share the cost.
Yes! Mr. Forsburg has the right idea ... but then he veers off into thinking-inside-the-box, concentrating on income taxes. He makes the valid point that:
Already, serious imbalances exist between New York and New Jersey. More
people commute into New York than into New Jersey — and all those
commuters calculate how much income tax they owe New York State and take
that as a credit against what they owe New Jersey. Because effective income tax rates are higher in New York, they pay little, if anything, to their home state. (New York salaries are, on average, 60 percent higher than in New Jersey, according to a recent report by the Regional Plan Association.)
But he ignores the important reality that the big winners in the construction of such a tunnel will be not those whose commutes are shortened or made bearable by the faster transportation and more options for getting from NJ to NYC, but those whose homes and commercial properties rise in value because of their increased accessibility to Manhattan.
A NJ landlord need never visit NYC to reap that benefit! A NJ homeowner need never visit NYC to see their property value -- the amount they can sell it for, the amount they can borrow against it, the amount they can rent it out for -- rise as a result of public spending on the tunnel. A NJ commercial property owner will see his land value rise along with the residential property owners.
And yet we don't ask them to contribute to funding that investment. And we seem to think it is their good planning or good luck or foresight which brings them the windfall.
And the fellow who doesn't own the land on which he lives, or the land on which he works, ends up paying more in rent to his landlord, not because the landlord has provided anything additional, but because the community has -- AND then is asked to pay via a tax on his wages for the infrastructure improvement.
Does the word sharecropping ring a bell?
No wonder we've not got as many jobs as we need! No wonder we've got unaffordable rents and unaffordable housing! No wonder mortgage lenders get rich! No wonder we get wealth and income concentration!
Those who would benefit should pay the cost.
Natural public revenue.
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