Bangkok_Dangeresque t1_j29rakr wrote on December 30, 2022 at 5:54 PM

Reply to comment by pixel_of_moral_decay in Citi Bike bumps up prices by 11% starting in the New Year | amNewYork by King-of-New-York

>This isn’t raising revenue. This is maintaining revenue during inflation.

That's semantics. I wasn't suggesting that they were raising prices just for the sake of improving profitability. Just that their costs are going up and so they need to increase revenues or else operate the system at a reduced profit or even a loss.

That said, Citibike's parent company Lyft has been on a tear of price increases and operational cost-cutting across all of its divisions following big declines in their stock price. Municipal programs like bike and scooter rentals have seen layoffs and price hikes in many cities.

>The city could just look to increase income tax slightly as an alternative

City taxes don't pay for Citibike. It's completely privately-funded (with the exception of community grants for NYCHCA residents, and city employee subsidized memberships).

pixel_of_moral_decay t1_j29wg24 wrote on December 30, 2022 at 6:26 PM

The city could look to use tax dollars to subsidize it. Shift the top tax brackets up to 2.5% and increase everyone over $150k and you'd have that plus some extra money for schools.

Bangkok_Dangeresque t1_j2a15td wrote on December 30, 2022 at 6:56 PM

Sure, the city could raise income taxes to fund whatever it wants. Though it already has some of the highest individual state and local income taxes in the entire country.

But for Citibike in particular this is a terrible idea. The city shouldn't be subsidizing private companies that are perfectly capable of funding themselves, especially considering the public benefits they already get

In addition, Citibike had about 100,000 daily riders at its pre-pandemic peak. Meanwhile, the city has about 4 million households subject to city tax, ~25% of which have household incomes at or above the $150k threshold you're suggesting, so about 1 million households would be subsidizing the daily transit of 100,000. That's inefficient, and that money would be far better spent on other transit projects with more reach.

Lastly, hundreds of thousands of households who might be subject to that tax live in the large sections of Queens, Brooklyn, and all of Staten Island that are not served by Citibike at all. This is not equitable.