MTA Bailout by Rivera Spares Businesses of Payroll Tax

ALBANY, NY (04/21/2009)(readMedia)-- Assemblyman Peter M. Rivera, a senior member of the New York State Legislature, today publicly unveiled a sensible and practical plan that if implemented by Albany would generate hundreds of millions of dollars annually for the Metropolitan Transportation Authority, and upstate communities with airports.

The plan which is an expanded version of a proposal he made to his legislative colleagues last month relies on raising the state levy on jet fuel by 2 dollars per gallon. Jet fuel consumption in New York State is over 20 million barrels per year or 854,322,000 gallons per year. A $2 levy per gallon would yield $1.7 billion annually for the MTA and Upstate communities with airports.

According to Rivera, "There are over 86 million boardings of airliners in New York State airports yearly. The heavy passenger traffic at New York airports requires the maintenance of road, bridge and rail infrastructure to transport all those passengers. It is only fair to ask for a modest increase in the cost of jet fuel which will have negligible impact on the prices of airline tickets and on the operations of airlines."

In letters submitted to the leadership of the Assembly and the Senate since last month, Rivera has continued to push for his idea to tax airline travel in order to spare businesses from an additional payroll tax, stop the tolling of the Harlem River and East River bridges, and prevent fair increases. "This is a real plan that spares the vast majority of New Yorkers and businesses from the harsh fees that have been recommended by the Ravitch Commission," declared Rivera.

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