Transcript: Mayor de Blasio Proposes "Fair Fix" Tax on Wealthiest New Yorkers

August 7, 2017

Commissioner Polly Trottenberg, Department of Transportation: Thank you, Danna. That was great. It is great to hear from a rider of the system and to be reminded how, as we all know, the mass transit – so important for everyday New Yorkers and for the health and economy of this great city. And now, it’s my honor to introduce the mayor of this great city, Mayor Bill de Blasio.

[Applause]

Mayor Bill de Blasio: Thank you to Polly Trottenberg for all you do to keep this city moving. And thank you for your service on the MTA board where you have been one of the consciences calling for more fairness for the people of this city. Let’s thank Commissioner Trottenberg for all she does.

[Applause]

And I want to thank you, Danna. That was really wonderful and it’s not easy to get up in front of all the cameras and talk about your own life but you did it very powerfully. And I think you spoke on behalf, really, of millions of New Yorkers who every day are dealing with these struggles.

And I hear from New Yorkers all the time what it means. You, to your great credit, talked about your patients – the people you want to serve, your clients, and your concern for them. There’s so many other stories I hear – people who can’t get to work on time and that affects their paychecks, people can’t get to a job interview on time and that affects the ability to get that better opportunity, parents who can’t pick up their kids at the end of school or daycare on time, folks who are trying to get to a medical appointment and miss it because of subway delays.

This is what’s going on. This is not just a subway crisis, it’s a human crisis, and New Yorkers are experiencing this every single day. And that demands new solutions. The status quo is not working. Let’s be clear. So we need new solutions right now and that’s what today is all about.

I want to thank all of the folks who are here in support, all the folks around us who have been working for change in this city in so many ways. I want to thank the Borough President of Brooklyn, Eric Adams, and his team for hosting us here in Borough Hall. I want to thank the advocates who have been fighting for a sustainable MTA and for fairness for riders – a special thank you to John Raskin, of the Executive Director of the Riders Alliance.

[Applause]

Paul Steely White, the Executive Director of Transportation Alternatives.

[Applause]

Someone who I’ve worked with for years and years, and understands what every-day New Yorkers go through because she helps their families in so many ways – the Executive Director of Good Shepherd Services, Sister Paulette Lomonaco. Thank you for being here.

[Applause]

And you’re going to hear from another two of my appointees to the MTA board in just a moment but I want to thank one other who has done such great work for decades for New York City – Carl Weisbrod, thank you for all you do for the city.

[Applause]

So, everyone look, we understand that in recent months, what New Yorkers are experiencing on the way to work, on the way to school is delays like they’ve never seen before. And we hear the reports every day – the track fire, the signal malfunction, the electrical breakdown.

Look, there’s been challenges for years but in the last few decades I can’t remember a time when there was such a concentrated set of problems as just in the last few months. That’s why I call it a crisis. All those years, in fact decades, when the State should have been investing in solutions they didn’t and it’s all coming back to hit us now. Everyday New Yorkers are really feeling the brunt. So, we know we can’t go on like this and we know New Yorkers are frustrated.

Let me ask this group of New Yorkers, are we frustrated?

Audience: Yes!

Mayor: Do we need a change?

Audience: Yes!

Mayor: This is what I hear everywhere I go. People do not want to see this madness continue. So, you know about the definition of insanity – when something isn’t working you can’t do it the same way over and over again, and expect a different result. It’s time for something new.

Now, to get to the changes we need, it begins with a recognition – I think this has actually been happening in the year 2017 more than ever before. It begins with a recognition of who is responsible for the MTA. And I will say it again. The State of New York runs the MTA. The Governor of New York appoints the leadership of the MTA.

If that point becomes clear to more and more people it is part of the pathway to a solution. It’s clear – the State of New York controls the personnel of the MTA. We’ve seen that in recent days yet again with yet another appointment.

The State of New York controls the budget of the MTA. Taking responsibility is the first step towards a solution. So, it’s clear that if we’re going to get it right, if the MTA is going to right work for everyday New Yorkers, the State has to continue to acknowledge its responsibility and, in fact, take fuller responsibility.

And I’ve said very clearly for decades the people of New York City have paid into the MTA over and over again and have not gotten their fair share back. I mentioned to you the other day – four dollars spent per subway ride per bus ride versus $19 spent per ride by the MTA for a suburban commuter.

There’s always been an imbalance and it has to be addressed for the long term good of this city and the region and the state. So, when you think about the history of unfairness, when you think about what New Yorkers give to the MTA every single year – typical year, $10.5 billion from New York City residents and people in New York City, contributing to the MTA through their fares, there tolls, and so many other ways.

And that’s about two-thirds of the operating budget right there before you talk about all the other things that the City of New York does to support to the MTA. Notably, a great example is the $2.5 billion in capital funds we devoted two years ago to the MTA not because we were obliged to but because we thought it was the right thing to do.

The City and the people of the city have done their share and now it’s time for the State to step up. And unfortunately, we haven’t seen that. In fact, the State has syphoned off money from the MTA, we’ve documented it – almost half-a-billion dollars taken from taxes and revenues meant specifically for the MTA, syphoned off, diverted to the State budget – never returned.

Taking full responsibility means owning up to facts like that. So, it’s time for the State to return that money to the MTA to address the immediate challenges that the MTA faces.

Are we ready for a little of fairness? Do we want to see that money given back to the MTA?

[Applause]

So that will help to address the short term challenges. But we’ve talked also about the big picture – the long term.

And I’ve said repeatedly, we’re ready to work with anyone to help figure out the long term future of the MTA. It’s in everyone’s interest to get it right. And that means we’re going to have to invest in the kinds of things that were ignored for so long, those basic things that make the subway system run, and we’re going to need the revenue to do it.

But this time we need revenue that will be sustainable, we need revenue that will make sure the system gets stronger, and we need fairness something, as I’ve said, we have not had enough off. Too many people who have paid in have not gotten their fair share back.

And too many people who could have been paying a little bit more haven’t been so it’s time for fairness when it comes to supporting the MTA.

That is why today I am calling on Albany to pass a millionaire’s tax to support the MTA.

[Applause]

And we need a millionaire’s tax so that New Yorkers who typically travel in first class pay their fair share so the rest of us can get around, so the rest of us can get to work, so the rest of us can live our lives here in this city.

It’s a matter of fairness. And I want to take this moment to commend two leaders who really helped to crystalize this idea in Albany. And I give them a lot of credit for it. I want to thank Senator Mike Gianaris and Assembly Member Danny O’Donnell who are here with us.

Let’s give them a big round of applause.

[Applause]

They started this ball rolling and we are now working in common cause. And I want to describe the tax we are proposing.

It is a modest increase in State income taxes for those who make half-a-million or more. That means, in fact, fewer than one percent of New York City taxpayers – and this will be focused on people who live in the five boroughs and are doing very, very well. It would, to give you an example, for an individual making about a million dollars a year and obviously doing very, very well – I think we’d all like to be making a million dollars year, wouldn’t we?

We’d be pretty happy with that. That individual will pay about $2,700 more in their annual taxes. What does that mean? If they’re paying $2,700 more, it means about seven dollars a day. To give you perspective that’s about a half-hour of parking in a typical Midtown, Manhattan garage.

So, we know there are plenty of people who make a million dollars or more who go in and pay for parking, buy expensive meals, do all sorts of things. They’re not going to miss seven more dollars a day. But for working New Yorkers it could make a huge, huge difference.

What would it mean for the MTA? Well, to begin with, we believe this tax would raise $700 million a year.

And we think in short order that would grow to over $800 million a year. And we want to do two things with that money. And I want to be very, very clear the legislative authors are going to make sure in the bill draft that these things are stipulated, that they are required because we’re not interested in the bait-and-switch at the MTA or by the State of New York, we want this to be dedicated funding specifically for this purpose.

So, first of all, half-a-billion of that money would go to modernize the system. If the MTA chooses to, that money could be used in the bonding process and that could support up to eight billion dollars in capital projects.

That half-a-billion each year would allow the MTA to bond up to eight billion dollars in capital projects. And they would be specifically for New York City subways, New York City buses, and of course the Staten Island Railway as well. It would be money devoted to improving service for everyday New Yorkers.

But there’s a second thing we want to see happen with this money, also, specific, dictated, clear terms that show it would only go to this second purpose as well – and that would be $250 million a year for Fair Fares for New Yorkers who need them.

[Applause]

This means half-priced MetroCards for 800,000 New Yorkers who are at or below the poverty level. Almost one-tenth of New York City will get a break on their subway fare.

[Applause]

Now, to put this in perspective, the MTA has been around a long time, this would be the first millionaire’s tax in MTA history and it’s about time. And let’s be blunt about this. There are a lot of wealthy New Yorkers. The folks I mentioned, that less than one percent – 30, 35,000 people who would be paying this tax are doing very, very well. And they, in fact, do well in part because of the MTA.

When the rest of us get on subways and buses to go to work, the folks who own those companies do well. When customers go to their stores and businesses, they do well. If it wasn’t for subways and buses that function they couldn't do as well.

So, it’s about time they pay a little more so the rest of us can actually lead a better life and particularly so those 800,000 New Yorkers who are struggling so much every single day to make ends meet can actually afford to live in this city.

That’s what this is about.

Now, I’ll conclude with this, I want to be very, very clear – in the legislation, it will be clear there’s only two proper uses for this money. Again as – for those who are enthusiasts of rock music from the 60s and 70s, we won’t be fooled again, to quote The Who.

We’re going to be very clear, in the legislation this money cannot be diverted, cannot be sent over to the State budget for some other purpose, cannot be used by the MTA for some other kind of need. It is explicitly going to be for two things and two things only, capital improvements to fix the basic operations of the MTA and the Fair Fare for those 800,000 New Yorkers.

Two things, two things only. No three-card monte. No bait and switch. No moving money away and never giving it back. It’s going to be very clear that it has to be used for this purpose.

[Applause]

And in conclusion before I give you a few words in Spanish – look, the status quo today isn’t working. It’s not working. We know the MTA is not working properly, we all are experiencing that. But we also know it’s not fair. We’re just not going to continue on the same path any longer.

It’s time to do something that will really break the mold here. There hasn’t been a millionaire’s tax for the MTA. It should have happened a long time ago. But with the one percent becoming wealthier and wealthier, it’s time for a millionaire’s tax so that regular New Yorkers, every day New Yorkers can get to work, can get to that doctor appointment.

It’s time for a millionaire’s tax so parents can get to school to pick up their kids. It’s time for a millionaire’s tax people who need to get to the doctor don’t miss their appointment. It’s time for some basic fairness, and that’s what we aim to achieve.

And we’re all going to work hard to make sure that happens. Are you ready to fight for it?

Audience: Yes!

[Applause]

In Español –

[Mayor de Blasio speaks in Spanish]

With that, I want to bring forward a man who has been a champion of the Fair Fare. And I’m honored to have him as one of my members of the MTA board, the CEO of the Community Service Society of New York, David Jones.

[Applause]

[...]

Thank you very much, David. Well done.

[Applause]

Yes, David, you have been obsessive but it’s for a good cause and thank you so much.

I want to note we have two wonderful leaders and advocates here, one of whom has been literally synonymous with the needs of subway riders and the fight for fairness for subway riders for decades. I’d like to thank the chief spokesman for NYPIRG’s Straphangers’ Campaign, Gene Russianoff. Thank you for being here.

[Applause]

And a great leader from Brooklyn who has stood up for communities all over this city, Dr. Una Clarke. Thank you so much for your leadership.

[Applause]

Oh, and the shy and retiring Hazel Dukes, the President of the state NAACP. Thank you for your support and leadership.

[Applause]

And now it is my honor to introduce another one of the appointees to the MTA board and she has been a tremendous advocate for a better MTA, the Executive Director of the Tri-State Transportation Campaign, Veronica Vanterpool.

[Applause]

I’m going to give you extra height –

[...]

I now want to bring up the two authors of the legislation in Albany and I really want everyone to thank them for their vision and their leadership and we look forward to fighting side by side – Senator Mike Gianaris and Assembly Member Danny O’Donnell.

Come on up –

[Applause]

[...]

Thank you. And now my great pleasure to bring forward a voice for working people not only in his district but all over this city as well – Congressman Adriano Espaillat.

[Applause]

[...]

Now, my pleasure to introduce a man who has been travelling the subway system talking to everyday New Yorkers and really bringing accountability that we need – the Chair of the Transportation Committee in the City Council, Council Member Ydanis Rodriguez.

[Applause]

[...]

Now, I want to introduce a man who represents one of the biggest unions in this country, who represents over 100,000 New Yorkers who need to get to work every day. He understands their challenges and their needs, and he’s in support – the Executive Director of DC 37 [inaudible] Henry Garrido.

[Applause]

[...]

Well done, Henry. I want you to hear from two more people. First, she has never been able – never been willing, let me start again. Never been unwilling, always been able to take on powerful interests and she, in fact, understands what subway riders are going through because where she lives, we have some of the most overcrowded subway stations in all of New York City – the Borough President of Manhattan, Gale Brewer.

[Applause]

[...]

Finally, a long time ago – 20 years ago there was a realization even back then that the rich were getting richer and that working people were not being represented enough in the political process. And a group of people got together to do something about it. One of them is with us here today – the Director of the New York State Working Families Party, Bill Lipton.

[Applause]

[...]

Okay, we’re going to take questions on this topic and then we will take questions on other topics. Dave –

Question: [Inaudible] Albany –

Mayor: Dave, I really like you but do you have a vote in Albany?

Question: No, but you see the comments –

Mayor: Ah, wait a minute. I’ll challenge you right away. I have experts. Mike and Danny will speak to it, who live it every day.

Question: [Inaudible]

Mayor: But, wait a minute, there’s an urgency, here, Dave. You heard it. You heard it. Things are profoundly different. The statistics Gale just gave – something has changed in just the last few years, particularly the last few months and it’s driving New Yorkers crazy. The subway is not working and that’s creating a tremendous amount of pressure on Albany to actually do something different.

So, I think you would agree, in moments of crisis, the political landscape starts to change. I also think at the same time, this has been brewing for years. You certainly saw it the last couple of years on the national level. More and more people believe the wealthy should pay their fair share in taxes.

So, there’s two things going on here at once. One – the people are demanding a solution to the MTA crisis. Two – people want to see the wealthy pay their fair share. This proposal addresses both simultaneously. And I think it’s going to be very hard for a lot of people in Albany to say no to that.

Does – my colleagues want to speak to that?

Senator Michael Gianaris: Just to be clear, the proposal we’re introducing would apply only to city residents. So, anyone that represents areas outside of the city as a lot of the Senate leadership does, their constituents won’t be affected other than getting better train service which in theory they should want, right? Because all the LIRR riders, all the Metro-North riders, when they get off at Grand Central or Penn Station, they’re then getting on the subways.

So, if you don’t think you’re hearing about the problems from their own constituents then you’re missing the boat. They may posture now at the beginning but the more pressure they get from the people they represent about how bad the system is, I think there’s room to maneuver in Albany. Never mind the fact that there’s actually more Democrats than Republicans in the State Senate. And so, if all the Democrats get together at least behind this proposal, never mind the leadership proposal, we should be able to make progress on it.

Question: Mr. Mayor, how do you ensure that a dedicated revenue stream like this would just not [inaudible] give the State an excuse to then scale back on what they contribute [inaudible]?

Mayor: Well, I’ll start on that. I mean, again, you know that that money that was taken – that half-billion – was from tax revenue explicitly by law dedicated to the MTA. And it’s time for the State to give that money back.

And I won’t be surprised if that becomes a legal issue unto itself if that doesn’t happen.

But in this case you’re talking about brand new legislation written by these two leaders that will stipulate – legally binding language – that the money has to go to those purposes. I’ll give you a great example which you're familiar with. One of the most effective taxes we ever saw in the history of this city was the Safe Streets, Safe City tax which was explicitly and only for the increase in the number of police officers and the after school programs.

And it went to just those purposes. So, you can stipulate that in the legislative process.

Question: [Inaudible] not that they would take this money away. We know this money could go there. What’s to stop the MTA from saying okay all this money is now going their –

Mayor: Absolutely.

Question: [Inaudible]

Mayor: No, very important question. I’ll start and my colleagues can speak to it because they’ll be the engineers of this. This is classic and legislative wording to have language that avoids a plantation that continues maintenance of effort that requires you can’t bait and switch.

So you can’t take this new revenue and suddenly syphon off other revenue and send it somewhere else. You have to keep all your previous efforts in place and this is additional to it. And that’s a matter of law, that way it’d be written.

Senator Gianaris: The State has promised eight billion dollars plus another billion when the Governor made his State of Emergency declaration for the capital plan. The legislation will require that that money continues to be spent for the purposes intended, and this will be on top of that.

Assembly Member Daniel O’Donnell: It’s not just the intent or the words. It’s also the general public sentiment of what that is that drives a lot of this. I think the Mayor is entirely correct. We’re in a crisis mode here and when there’s a crisis mode, people pay attention to things that sometimes they don’t pay attention to.

I think the public is paying attention to what the MTA is, who runs it, who appoints them, and what they’re doing with the money. And so, this bill, when it comes into law will further focus the attention on the MTA and the need for a world-class public transit system.

Question: People that you’re essentially trashing, actually take the 4, 5, 6 to Wall –

Mayor: People that I’m what, please?

Question: The people that you’re essentially trashing –

Mayor: That’s your editorial comment, my friend. I don’t – there’s nothing trashing –

Question: [Inaudible] down to Fulton Street, Wall Street [inaudible] –

Mayor: Wait a minute, are you editorializing or are you asking a question?

Question: I want to know how are they not taking the 4, 5, and 6 every single day down Wall Street and Fulton and they themselves are not essentially taking a Jaguar, a Lexis, down to their jobs and are not hard-working –

Mayor: Which outlet are you with, may I ask?

Question: I’d like to know –

Mayor: Just asking you a question. Which outlet are you with?

Question: Daily Caller as well as [inaudible]

Mayor: Uh-huh.

Question: I’d like to know –

Mayor: Yeah.

Question: How is it not you essentially trashing the people who –

Mayor: Okay, so you obviously have a political axe to grind, and let me be clear. We said it very clearly. We’re not begrudging anyone’s success but the success that many wealthy have achieved have been because of government policies that favored them – a tax code that favored them.

Question: [Inaudible]

Mayor: Sure and we think that’s great. And they also can afford to pay a little more for the good of the whole society because right now there are laws that are helping to be as wealthy as they are.

Question: [Inaudible] class warfare scheme –

Mayor: It’s not class warfare at all. It’s saying that people should pay their fare share.

Question: [Inaudible]

Mayor: Okay, way back there.

Question: [Inaudible] congestion pricing, that, you know, it’s not going anywhere [inaudible] non-starter. Considering the resistance to [inaudible] what makes you think that this has more potential to not be a non-starter [inaudible] –

Mayor: Yeah. It’s apples and oranges to me. When the City of New York is requesting just to be able to tax our own people, I think that changes the dynamics in the State Senate. Obviously, some other things affect suburban residents as well. This would not. And you are very familiar with the political realities in the State Senate. That’s a big fault line right there.

So, I think the fact that there is a subway crisis, it’s affecting everyone including suburban residents – but we’re saying we’re only asking that New York City residents who are wealthy pay that tax, I think that’s a sweet spot.

Again, my colleagues can speak to the Albany conditions better than I can. But I think it hits a couple of different notes that makes it something that can pass in Albany. And the urgency of the moment is a central point. There has to be a solution and here’s an available one that can make a difference in a very big way including for all those folks who can’t afford the subway fare right now.

Question: [Inaudible]

Mayor: Hold on. I’ll come back to you.

Question: How did you come up with the threshold for [inaudible] how much to tax?

Mayor: For me, it was following up on the model that we originally put forward around pre-K in 2013. Same basic concept, there are a few adjustments but the same basic concept that half-a-million in terms of folks who are single, a million for folks who are married. But – and it’s consistent also with the work that the Senator and the Assemblymember were doing. So, it, for me, was based on what we had been doing four years ago and then working together with them to craft something that we thought would make sense.

Yeah, Azi.

Question: [Inaudible] Governor’s Office, yesterday, put out a statement suggesting they would explore the possibility of testing congestion pricing [inaudible] done before. What do you make of that [inaudible]?

Mayor: It’s the first I’m hearing of it. I haven’t seen that previously, so I don’t know what to make of it honestly but, you know, right now, I think this is the solution that can start to have a real impact and also is one that a lot of New Yorkers could get behind. I’ll let my colleagues jump in anytime you want.

Yes, sir.

Question: What makes you think that the Governor, who already wants you to pay $400 million to immediately repair the subways, is going to sign off on this plan?

Mayor: I think there’s going to be a lot of pressure. It’s the political process. I think there’s going to be a lot of pressure from the grassroots for this change to happen. I talk to more and more New Yorkers who understand that the Governor and the State control the MTA. They want accountability. They want change. This is a way to bring new resources in.

And look we see it every passing year that folks who are doing well are doing better and better. I mean, it’s literally – we see the statistics. You heard that example of what’s happening with CEO pay compared to what it used to be. This is matter of fairness to say okay, here is something that right now can start to put resources in the hands of the MTA. It’s available. It could be done very quickly. It’s based on models that have worked before.

So, I think that’s why. I think it’s the urgency and the fact that it’s a readily available plan.

Question: Joe Lhota said over the weekend and this morning that [inaudible] emergency repairs are so dire, he needs money now. He can’t wait on the legislature [inaudible] –

Mayor: I’ve said it many times. That money is available right now. The State just has to give back the money that it took away from the MTA. I imagine, for example, if we were having the same conversation about anything else at the City level and you had evidence that I had taken money away from say the Department of Education, and then there was a crisis in our schools that needed to addressed. You would be asking me right now, why don’t you give that money back?

Let’s just be real. Let’s be consistent. Ask the same question of the State that you ask you of the City. The money was taken from the MTA budget. Put it back. That will fund Lhota’s plan. It’s that simple.

[Applause]

Mayor: You would be asking me right now, why don’t you give that money back?

Question: Right.

Mayor:  Let’s just be real, let’s be consistent. Ask the same question of the State that you ask of the City. The money was taken from the MTA budget; put it back. That will fund Lhota’s plans, that simple.

[Applause]

Mayor: Go ahead.

Question: [Inaudible] program [inaudible] quality undocumented New Yorkers because of the [inaudible] program –

Mayor: What was the first part, I couldn’t hear the beginning.

Question: Who will qualify, and how?

Mayor: Who will qualify, alright? I want to see which member of my team or of our legislative leaders wants to speak to the specific construction around the Fair Fare standard?

Unknown: Dean.

Mayor: Dean? Dean Fuleihan, the mysterious Dean Fuleihan has emerged, our budget director.

Director Dean Fuleihan, Office of Management and Budget: I’m mysterious? It would apply to about 800,000 New Yorkers below the federal poverty level. That is the proposal; it’s very consistent what David Jones and the group had put out. And it would be half price on the the Metro Cards.

Question: [Inaudible]?

Director Fuleihan: It would be to all residents of New York. And it would take, we’re assuming about a two year phase into fully get to that number.

Mayor: David.

Question: A couple of weeks ago you were asking whether New Yorkers would support you know, paying more money to the MTA. [Inaudible] money that they have, what [inaudible]?

Mayor: Well one, David, the money that they have, I just referred to I think it was a minute and half ago. That the money the State has it needs to give back to the MTA, point one. I said at the time and you’ve been in the room a bunch of times. There is a long term issue that has to be resolved with everyone at the table. Here is a way to start to resolve the long term situation, but the short term situation should be based on the money the state has right now.

Question: [Inaudible] 2013 –

Mayor: Yes.

Question: [inaudible] in Albany –

Mayor: Yes.

Question: [inaudible]. How [inaudible]?

Mayor: I think they’re all different situations. So, let’s do all three of them. We proposed a tax for pre-K and after school, we got the next best thing, we got consistent funding line from Albany. So I am going to score that one as a victory. Proposing a tax got us the money and guess what, there is 70,000 kids going to pre-K right now, and we’ve doubled the number of kids in after school at the middle school level. So, we proposed the mansion tax, which is a very different kind of tax fund, those who buy expensive homes – there was a lot of support in the city. We could not yet prevail in Albany. I think there is obviously the chance there will be major changes in Albany going forward. I think that that option is going to be smiled on in the near future in Albany. There is a ton of support because 25,000 seniors will get affordable housing, and they certainly want to see that change. This now is about a crisis that all of you rightfully have been talking about non-stop for months, and you will continue to until it’s resolved. There is a lot of pressure on Albany to address it. We’re taking a model that had a lot of support in 13, applying it to a crisis moment which I think adds urgency and intensity to the fact that there has to be a response from Albany. Also, David, I would say on this one, a big change in the course of this year is a recognition among more and more New Yorkers, that the State controls the MTA. Which, for a lot of people they did not know and more you see it in every public opinion poll. More and more people get it, and now they’re demanding accountability. So, we’re offering an option working with our colleagues. Here’s a way to solve it.

State Senator Michael Gianaris: I just want to frame the question – the answer a little bit differently. The difference here is everyone agrees that money is needed. Okay, the Governor has said the MTA is underfunded. The Mayor obviously believes that, the legislature believes that, even the Senate Republicans I believe, believe that the MTA needs more money. Then it just becomes a question of well, who is going to pay? And where is that money going to come from? And if you look at it through that lens, how on earth can we justify further punishing the people who are already suffering due to bad subway service by asking working people to fit the bill for that? The fairest thing, the easiest thing is to ask those who can most afford it, to do it. And on the short term question I just want to point something else out. The MTA amended its capital plan maybe a month and half ago. What was it John, a month a half ago, a month ago? Something like that. They moved over a billion dollars away from signal fixes and new subway cars, to things like subway station beautification, okay. That happened during this crisis. So for the MTA to say they need the money from somewhere else. How about pulling that money back that they just moved away from the exact things that were needed and making sure we can get the job done.

[Applause]

Question: Two part question, the first is this. You’ve said it, certainly one option, or other options, Governor Cuomo has floated an idea in the last 24 hours to look at congestion pricing and possibly putting some kind of a surcharge on for hire products like Uber and Lyft and others. Do you think that this is the only way that you could raise money? Or would you support other options?

Mayor: I have to see other options to be able to judge them. I think this is the best way to get something done immediately that would have a very a big impact. And I think it’s clear Marcia that the wealthy are not paying their fair share in taxes, and we could get a lot done by asking them to pay just a little bit more, both in terms of fixing the fundamental problems in the MTA and providing a lower cost fare for New Yorkers who can’t afford the MTA. So I think this is the best option. But you know, we’ll certainly look at any other proposal that comes along.

Question: The second part of my question is this. Since the Senate Republicans, [inaudible] – the Senate Republicans have already said that they don’t support this. What would you do personally to lobby for this? Are you going to go up to Albany? Are you going to meet with them? And the Governor is signaling that he doesn’t exactly like it either, given the fact that he’s pushing congestion pricing. So, what do you think that you can do to use your good offices to make this fly?

Mayor: I’ll do whatever it takes. If it’s helpful to go to Albany, I’ll go to there, ill obviously work closely with the legislator’s here who are leading the charge. But I think the demand from the people of New York City is what’s really going to make the difference Marcia. I think that people of this city are fed up; they’re hurting every day because of what’s happening in the subway. They want to see a solution; there is no long term solution on the table. Here is one that would work. And by the way I think people have eyes to see, they know the rich are getting richer, and they know the rich are not paying their fair share in taxes. When you add all of that together, I think there is going to be a long of support and that will change things.

[Applause]

Question: [Inaudible] Fare Fair [inaudible] year that you believe in something that the MTA or the state should be paying [inaudible]. So I am wondering what would change about that dynamic, because this is still money [inaudible] used [inaudible] anything [inaudible] –

Mayor: Look, I think if we had the ability to determine our own taxation, instead this semi-colonial dynamic we live with where to be able to tax our own people we have to go to Albany. We could have a whole different discussion. But given the reality today, I thought this made a lot of sense. When originally I was talking about some of the options, this idea did not occur to me certainly of using this kind of method to both address the ongoing physical needs of the MTA and to address the need for the Fair Fare. I didn’t hear those ideas put together originally. Again, while I give a lot of credit to Senator Gianaris and Assembly member O'Donnell because they got the ball rolling on the idea of a Millionaires Tax and a lot of people started thinking about it said here’s with that tax a way we could address both issues. So that idea made total sense to me, and yeah it comes from New York City tax payers, but it comes from New York City tax payers who should be paying more anyway in my opinion. I don’t get to decide that, that has to be done in Albany. To the previous point, I think this one that actually could get passed in Albany because of the crisis. So I would consider that a net gain for everyone and a fair way to resolve the issue. And I think it’s a pretty impressive combination of pieces that all of these folks you know here today are fighting for; it combines a couple of different efforts in the one thing that really had not occurred to us until very recently. Erin?

Question: [Inaudible]?

Mayor: Would I accept the State giving us a lot more money? Yes.

[Laughter]

Mayor: Call me old fashioned. Erin, look, I think a tax on the wealthiest New Yorkers to address the MTA problem is fair and it could be the most sustainable solution particularly since it will be written to dictate that that money only go the MTA and only to the these specific purposes. But, if Albany once again if leaders in Albany for whatever reason are not willing to tax the wealthy but they want to put additional money into the MTA to achieve these same goals, that would clearly still be a victory. Gloria?

Question: So, Mayor, two questions, can you address some of the criticism people have said that a tax like this is going to cause for mass exoticism for city’s millionaires too leave? And when you talk about congestion pricing and the problem that the city has with congestion. Why not tax, why not make the drivers pay more? When you talk about the drivers who drive their cars and pay for parking spots, why not ask those folks to pay more?

Mayor: Look, again, I for many years have never seen a scenario where this was a realistic option in terms of Albany. I have never seen a proposal that addressed a lot of the equity issues that would be created for people in the outer boroughs, for people who are with low income and use their cars. There’s a host of issues, and again I’ve just never addressed in this discussion. I think this is a better way to go about addressing the immediate challenge. Because it – ask those who’ve done very well, to do a little more, and it goes to some of the most immediate needs to the MTA system. Its clean, its straight forward, it’s something that could be acted on very, very quickly. So I have not seen that in other proposals.

Question: [Inaudible]

Mayor: Say again – oh, I’m sorry.

You know, that is – there’s two things I’ve heard over the years, and my colleagues may want to jump in, and Bill Lipton may have special expertise on this question because he’s been involved in every effort to raise the minimum wage and every time – every, every time – we were told business would collapse, jobs would plummet, and the exact opposite happened. So every time we’ve talked about raising taxes on the wealthy, we get the concern ‘will the wealthy leave?’

From what I’m seeing, the wealthy have been coming to New York City in record numbers. Look at all those tech entrepreneurs who are streaming into New York City. Look at all those people who want to live here, who have the money, can afford the lifestyle that they want to live in New York City and are not interested in being somewhere else where they can’t have that lifestyle, they can’t have the opportunity to do business that they find here. So I’m always willing to look at data, but I’ve never seen any data that proves that point.

Question: How will you make sure that the money will go towards the capital improvements and the fair fares and won’t get siphoned off? And also what if this just doesn’t work, what are you going to do?

Assembly Member Daniel O’Donnell: Then you write a new law, and that’s part of the problem with legislating in general. Obviously there are mechanisms where you can use dedicated revenue and define what the dedicated revenue is to be used for. Most specifically you need in this crisis to come up with a solution that’s recurring. Throwing $50 million, $500 million, $5 billion at the problem once is not going to fix the problem that exists two and three years going down the pike. We need to ensure that there is a funding source that is available, dedicated, recurring to keep and maintain New York City’s subway system as a world class system, and if we don’t, we have failed. And, you know, Mr. Mayor would like to get rid of all of us in Albany because we’re in his way. Every mayor I’ve been through has wanted to get rid of Albany. We’re there, and Senator Gianaris and I will continue to make sure that we fight to ensure that the money is used the way we dedicated the money to be used.

Mayor: Let me see – I’ll come right back to you. Let’s just get Anna who hasn’t gotten a chance.

Question: I have a couple of questions. New York City tax payers already shoulder the burden of most of the MTA’s capital plan, so this would essentially raise that burden for a certain number of those tax payers?

Mayor: Yes, 32,000.

Question: Can you talk about whether that’s fair if –

Mayor: Because 32,000 people have done very, very well because of what they – most of them – have experienced here in the city. They have benefitted from being in the city. They benefitted from the MTA, again, getting their workers to work and their customers to their businesses, and to ask them to do a little more is absolutely fair.

Again, maybe this is a moment in history challenge, but you heard some of the previous speakers talk about what the tax rate used to be on wealthy people. It’s been a very cynical reality, Anna, over the last few decades how the tax rate has been consistently knocked down for wealthy people, and the country’s been suffering and the city’s been suffering as a result.

Question: [Inaudible]

Mayor: No, but I’m saying it’s absolutely fair to ask that 32,000 to pay more. I don’t consider them to be in the same boat as the other 8 million-plus people who are struggling in so many cases to make ends meet. I think that group can afford to pay more.

Question: What I was trying to ask was why not make this a statewide thing since city taxpayers have been funding capital improvements statewide?

Mayor: Very fair question, but I think this is where I believe it maximizes our chance to get the thing done. To have it be a tax focused on wealthy New York City residents – in terms of Albany, we all understand the challenges getting something done in Albany – I think this makes it more palatable to a lot of the upstate legislators and suburban legislators. And the money is there. That’s the other fact. The money is there. You hear the dollar figure this would achieve. It would make a huge difference for the MTA, so that is a tip of the cap to practicality. I think it’s the best way to get it done.

Question: And then follow up congestion pricing from Move New York. That plan has been out for, I believe, at least two years now before all this attention started being paid to the subway crisis. Have you read that plan, and I don’t understand why raising the tax on the wealthy would be more practical than a bipartisan plan that’s been out for multiple years?

Mayor: Okay, I have no idea how bipartisan or not it is. I was briefed on it in 2013. I have not looked at it since because I’ve never had any reason to believe it had any chance of passage. I think this is a very different proposal we’re putting forward here that has an equity core to it that’s really, really powerful. I can’t speak to that other plan because I’m just not up to date on it. This one, as I said, four years ago was the last time I looked at it carefully because I realistically understood it had no chance of going anywhere. The plan that we’re putting forward speaks to equity. It asks those who have done well to pay more, and it addresses the needs of 800,000 in so many cases can’t afford to get on the subway. That’s why this plan, right now, is available and one that can make a difference, and one that I think that can be passed.

Question: Mr. Mayor the MTA has many problems, not only the subways but they have Metro North, the Long Island Railroad, and generally speaking they’re going to need money for those things as well. I’m wondering given the fact that the MTA is going to want to do something more globally, I would imagine, if you would support a millionaires tax in the metropolitan – the MTA region, Long Island and Westchester – on millionaires in the broader area, so that you could support the transit needs of everybody who lives in the area.

Mayor: Look, I think there needs to be more fairness across the board, and I think those who have done well all over need to pay their fair share in taxes. I’m not as knowledgeable about what those models might be for the region or for the state, but here’s what I would say. I think this plan makes sense right now because I think it’s the one that has the best chance of getting passed, and because there certainly are enough millionaires and billionaires in this city to pay this tax to allow us to make these changes. If there’s other things we can do beyond that, I’m all ears. But this is the one I think has the best chance of getting done.

Rich?

Question: [Inaudible]

Mayor: Rich, what I have always found is there are some who are and a lot who are not. That’s just typically been the case. I know a lot of people who are wealthy who recognize that the wealthy are paying a lot less in taxes than they used to and recognize a lot of problems in our society that need to be addressed, and I certainly have met wealthy New Yorkers who have said ‘I’m ready to pay more.’ I’ve met other who are not, but in the end that’s not where the vote is. The vote is among the members of the Senate and the Assembly. It would be great to have some wealthy people come on board in support, but I think the voices of millions of New Yorkers is really what’s going to make the difference here.

Is there anyone over on this side on this topic? Go over to this side – yes, Melissa?

Question: Stop you if this is what Marcia asked, I couldn’t hear her question – but if the leaders in Albany were to coalesce around the congestion pricing plan before this plan, will you continue to push for a millionaire’s tax and will you [inaudible] criticism that you’re just interested in taxing the wealthy?

Mayor: If the criticism – if there’s a criticism that I’m taxing the wealthy more, I’ll accept that critic because I am interested in taxing the wealthy more. I don’t think there’s anything wrong with it. I think it’s about righting the wrongs of the last few decades where the one percent have been asked to pay less and less in the way of taxes. I want to move the plan that has the best chance of getting something done. I think this is that plan. If other plans start to move, we’ll certainly look at them.

Question: [Inaudible] have you addressed this plan [inaudible] governing Senate majority have you spoken to senator Marty Golden, have you spoken to Senator Simcha Felder [inaudible.]

Mayor: There will be time for all of that. It’s just being announced with our colleagues. Obviously they have put this idea in the bloodstream previously. We’re working together now. We have time to go to all of those leaders. I’ll certainly talk to all of them, and we’ll start organizing New Yorkers to get it done.

You know, I understand a lot of the questions here are about will I talk to a leader. We’ll do that. That’s not how change happens. Change happens from the grassroots, and what I think is going to happen here is more and more New Yorkers are going to say ‘yes, I want the subways fixed, and this is a way to do it. I want the wealthy to pay their fair share.’ And that’s what’s going to move the spectrum, not charming conversation.

Question: What is your response to TWU workers who are here?

Mayor: Look, I want to say that first of all, and I want to ask everyone to join me in this, I have some political differences with their union leadership on some issues, but the people who do the work every day in our transit system every day deserve our respect and our praise, and I want to thank them.

[Applause]

Okay, last call. Any other questions on this topic, and we’ll go to others?

Question: If the millionaire’s tax – if you don’t see any movement of that in Albany will you look to fund fair fares through other city resources?

Mayor: Again, I believe this is something that is absolutely caught up with the question of who is responsible, right? And I made the point about a millionaire’s tax would have to be approved by Albany, and if it were structured to ask those who have done very well to pay their fair share I would consider that a fair outcome. It still means Albany stepping up and taking responsibility for the situation, not forcing expenses on the city. I want to remind you this has to been seen in light of a number of other forays in the last few years. You all saw the budget effort a year and half ago to  make us pay more for CUNY, make us pay more for Medicaid. You’re going to be seeing a lot more of that by the way – I warn you all right now. You’ll constantly see efforts coming out of Albany to make the City pay more, and I say the same thing to it every single time.

First of all, Albany needs to step up and take responsibility for the things they run. They run CUNY. They run the MTA. I run the police. I run the schools. I run the Sanitation Department. I run the parks. That’s my responsibility. I’m not going to see our money taken away in an atmosphere where we all know just a few months from now we might be on the verge of losing a huge amount of federal support, and then the State will also cut support to us. And this is something anyone watching can do this math really quickly. Federal budget deep cuts to housing, education etc. There will be cuts to the State. There will be cuts to the City. The City – the State, excuse me – will turn around and take away money from the City. So we’ll be hit twice, double jeopardy. We’ll have to survive on our own. The only thing we have is our own resources to get by. There will be no cavalry coming to help us. By the way, we’re also not going to be shocked at the same time if the wealthy get a huge tax break from Washington. So all of these things are happening at once. My answer is we’re going to protect our prerogatives here. We want the State to take their responsibility for their piece.

Alright let’s go to other topics. Other topics, yes?

Question: [Inaudible] you preparing for Trump’s visit next week?

Mayor: Look, the NYPD is the most expert police force on Earth in terms of handling visits by an American president. They do an outstanding job. I think we’re going to be ready by any measure, and I do want to say it’s been a lot less than we expected. We expected President Trump might be back a lot. He’s only been back once previously, and to his credit he kept the time here very limited and the disruption very limited. So hopefully that will be the same this time.

Yes?

Question: Rahm Emanuel, he’s going to sue the Justice Department –

Mayor: He what?

Question: He’s going to sue the Justice Department over the sanctuary city policies. Are you going to join him on that lawsuit?

Mayor: Well, if there is a specific effort to withhold funding we’re ready to join in legal action to stop it. So far there has not been any funding withheld, so our message is if funding actually starts to be withheld then we will take legal action.

Yes?

Question: [Inaudible] lawsuit filed this morning by [inaudible] taxpayers regarding your [inaudible] your response to it?

Mayor: It’s the definition of frivolous. Simple standard, anyone who works for an organization, and there’s a legal issue related to their work – and this would be true if every one of you. If there’s a legal issue related to your work at your job, it would be right for your job to cover those legal expenses. That’s the conclusion I came to. It’s been the history for decades. It’s just a frivolous lawsuit.

Erin?

Question: [Inaudible] you previously said you barely knew these two –

Mayor: I’m just – speak up a little more.

Question: [Inaudible] I’m wondering if you can explain how you square saying you do not know them with this ongoing relationship?

Mayor: Both are true. I never knew them well. I’ve told you guys many a time these were part of a slew of people who suddenly wanted to be connected to our world when I won the election. Didn’t know them. I heard that they had been involved in the community. Just never knew the personally, and then you saw they sent emails and what typically happened was they didn’t get what they wanted.

Yes, David?

Question: On that same topic, some of the interactions you had with them [inaudible] you would email back within minutes, is that typical of your interaction with constituents in New York City?

Mayor: It’s typical of my interaction with people I know. I get emails all the time, and if I’m looking at my email I try and respond right away because I want to get it off my plate. It’s consistent.

Look, people come up to me all the time. People reach out to me all the time. I don’t know if you were at the town hall meeting in Harlem last week, but this is sort of typical of what I experience whether I’m on the street or in the subway or at a town hall meeting. People say ‘here’s a problem.’ I have a witness – I often say the commissioner will follow up or even in many town hall meetings I’ve said the commissioner will come to your block or come to your specific organization and sit with you and meet with you. It’s one of the ways to do things.

Question: [Inaudible] no other way of getting to you. These folks had a direct line within weeks of you being elected?

Mayor: Well, so do you. There are people who – there’s the media, elected officials; there’s community leaders, folks like those sitting in the front row here who I’ve known for years and years – they’re people you know who, you know, if they reach out to you, you respond. I think that’s part of human life.

Question: [Inaudible]

Mayor: Look, this rezoning is unusual compared to all the others because it’s the Speaker’s own district, and the Speaker and I, as you know, work very, very closely together and have for years. We’ve had multiple conversations about the rezoning, and we’ll continue to. So this is true of many situations when it comes to land use that a real concern is raised at the community level, a real concern is raised by elected officials – I think what’s good is when you then hear those concerns and try and work them through and try to find a solution that people feel pretty good about and certainly most importantly the person whose vote matters the most –the representative of that district in the council – feels good about it. And there’s plenty of time to do that, and we’ll stay at the table having those conversations.

Marcia?

Question: Mr. Mayor, getting back to the emails, did [inaudible] people who donated to your campaign who had your personal email – in fact one of you felt so close to you that he sent a recommendation for an appointment, and you sent back an email saying ‘Jona, I’m all ears.’ I wonder what kind of a message that sends to people about a possible pay-to-play culture at City Hall?

Mayor: I reject that notion. I reject it out of hand because people offer their ideas all the time to me whether they are elected officials, community leaders, people I meet on the street – just everyday citizens. I listen. Sometimes those are good ideas. Other times they’re not. I’ll listen. Those ideas those guys were putting forward, typically were not good ideas and not given the time of day by those who looked at them.

Question: [Inaudible] personal email?

Mayor: Because people you know have your personal email. It’s as simple as that.

Question: [Inaudible]

Mayor: Well, you have a different relationship with me than many, many other people.

Question: [Inaudible] your donors who had your personal email.

Mayor: I have people who I’ve worked with for years, as I’ve mentioned – leaders, community activists, elected officials, business leaders – who reach out to me in all sorts of ways. And donors are allowed to reach out in a democratic society and put their ideas on the table. The question is what happens with them. Anything they put forward is looked at on the merits, and then typically – in their case – rejected.

Yes?

Question: Just a really quick question. When was the last time you’ve ridden that Staten Island railway if you’ve ever ridden it?

Mayor: I have ridden it, but not for quite a while. I can’t give you an exact date.

Question: In the last decade?

Mayor: I don’t know. I really don’t know. I’ve ridden it, but I don’t know when.

Question: Does the city intend to more vigorously [inaudible] triple-X businesses around the city, particularly the Times Square?

Mayor: Well, explain the question. What do you mean by that?

Question: [Inaudible] in June, the State repealed [inaudible] rule banning  some triple-X establishments in parts of the city. Some businesses in the Times Square area were able to get past that 2001 ruling by having a certain amount of material that was not considered triple-X, but still selling some. Some businesses were concerned that [inaudible] in June will jeopardize their businesses.

Mayor: So they’re concerned that those types of stores would be able to assert themselves in some way?

Question: [Inaudible] they’re going to have to go out of business [inaudible]

Mayor: Look, this is – I’m not an expert on the ruling at all, but I can state the obvious. This is always a tension in terms of what rights people have under the Constitution versus how we want to have a certain quality of life that respects everyone. This is always a challenge. We will enforce the law vigorously. So if the law has been amended, we will work with that amendment, but for those who are concerned about the reinvigoration of those types of businesses, I can say very squarely we’ll use all of our powers to make sure that doesn’t happen. We’ll stay within the law, but we’ll be very aggressive in our enforcement.

Thanks, everyone.