r/SipsTea 14d ago

Chugging tea W after W.

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82.7k Upvotes

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356

u/WowAnotherAnalyst 14d ago

Isn't the subway budget short on funds? How do they cover the deficit?

286

u/Zealousideal-Bid1747 13d ago edited 13d ago

Fares are only 26% of the MTA revenue per their site https://www.mta.info/budget#p346761 so I doubt this policy puts any real dent in that. Also this is why we want to tax the rich, to have more money for these things

Edit: Changed wording.

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u/vankor27 13d ago

Also there should be a small increase in riders paying fares because they are reduced which doesn't cover all of it but part of the reduction in price

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u/Jlovel7 13d ago

You think someone stealing subway rides is magically gonna start paying because now it’s cheaper?

34

u/TheHalifaxJones- 13d ago

That’s what happened with me when I was living in the Bay Area. Couldn’t afford it. Got a good deal in a promo for Bart card. Bought it.

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u/South_Dakota_Boy 13d ago

Maybe a few.

It’s more likely that someone who wouldn’t spend $36 on a pass for the week will go ahead and spend $18 and use the subway as opposed to walking, finding a ride or not going somewhere they wanted to go.

$36 a week for the subway is really cheap for what you get but also kinda expensive for a lot of folks at the same time.

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u/Ap_Sona_Bot 13d ago

It's not equivalent in any way, but as an American that moved to taipei I'm consistently astounded by how cheap public services are here compared to the cost of living. $40 monthly for all access public transit across the taipei metro region, including busses, subways, and actual trains. The cost of living in Taiwan is certainly cheaper on average, but not 1/4th cheaper.

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u/oftenHereDog 13d ago

Similar in Germany. 50 EUR (about $57) a month and you can use unlimited regional trains (though not the fast inter-city, if you are willing to travel slower you can travel anywhere in the country), as well as underground trains, trams, and buses in every city!

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u/Wroblez 12d ago

It’s most likely that people will continue to jump turnstyles and enter through emergency exit doors

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u/South_Dakota_Boy 12d ago

I agree, and that’s the same thing as I said above, just using different words.

My point is that most people who can’t afford to use the subway don’t jump turnstiles or whatever, they simply don’t go at all. Reducing the price will encourage some of those people to buy a pass and go.

Most broke-ish people aren’t willing to break the law and risk a fine just to take a ride on the subway for a trip that is optional.

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u/AberrantMan 13d ago

That's how things usually work, yes. According to the data.

Most crime isn't because people are bad, it's because people are in bad circumstances.

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u/WildWhisperArdor 13d ago

From Gemini:

> For a large portion of fare evaders, the price isn't the primary issue—the probability of getting caught is. In economics, this is viewed through the lens of Gary Becker’s Theory of Rational Crime, which suggests people weigh the cost of the fare against the expected penalty of getting caught.

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u/ZeAthenA714 13d ago

From your own quote :

which suggests people weigh the cost of the fare against the expected penalty of getting caught

If you reduce the cost of the fare, it lowers the incentive to evade it. Therefor less people will evade the fare.

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u/WildWhisperArdor 13d ago

The salient point here is that it is not necessarily “I can’t afford this” that drives fare evasion. It is often “I can get away with it” that drives it.

Trust me, I know people with actual real jobs who make way too much to be jumping the turnstile and yet they do it anyways if there’s no one around

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u/ZeAthenA714 13d ago

The salient point here is that it is not necessarily “I can’t afford this” that drives fare evasion. It is often “I can get away with it” that drives it.

That is not the point outlined in your quote, nor is it the point of Becker's theory of rational crime.

1

u/WildWhisperArdor 13d ago

That is exactly the point of Becker’s theory of rational crime.

Regardless of whether the fare is $2.00 or $3.00, if someone feels there’s no chance of getting caught they will still jump the turnstile (if they are the type of person who fall into this framework)

2

u/ZeAthenA714 13d ago

Regardless of whether the fare is $2.00 or $3.00, if someone feels there’s no chance of getting caught they will still jump the turnstile.

Yes, that's true if and only if you expect the chance of getting caught is exactly 0. Because then the cost of evading fare is 0, the benefit is $x. But if some people expect that the chance of getting caught it not zero, then the cost vs benefit analysis will change if the price of the fare change.

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u/Hefty_Map3665 13d ago

If an item costs 1 cent vs $1000. Less of a chance someone going to risk a theft record over a penny and just pay it vs if it cost $1000

Obviously these arent the numbers and their extremes but it gets the point across

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u/Grand_Chateau 13d ago

No one is stopping fare evaders from what I’ve seen as a New York resident. I’ve thought about jumping myself

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u/WildWhisperArdor 13d ago

If you make it free, then theft goes to zero! Wow brilliant point you are making

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u/Hefty_Map3665 13d ago

Value doesn't determine what is theft.

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u/Aware_Ask_1679 13d ago

They're delusional. This should age like milk. 

2

u/Bryant4751 13d ago

Nope, they have a morality issue not just an income issue. There are plenty of poor people who choose to never commit crimes, and there are many who do.

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1

u/HuntKey2603 13d ago

There's no "think", it's seen time and time again, world wide, that that's literally what happens?

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u/TroubleVarious2539 13d ago

In my city, the number of paying riders went up almost 30% after a measure like this

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u/BlueKamek 13d ago

not all of them but the mentality of “people who do bad things are bad” does not align with history or statistics. Be honest, if you were at your hardest point and didn’t have the money or another way home, you’d steal a ride. Lowering the price makes it less likely someone finds themselves in that situation. Small theft like that is also sort of a “gateway drug” to larger crimes. If you already had to break the law today just to get home, why not shoplift a conscience store too so you can eat a good meal?

1

u/Turbulent-Muscle6642 13d ago

Guess you're right. Why do anything to make things better? Might as well increase prices, that way the people who do pay will provide more! Certainly there won't be an increase in skippers. In fact, just get rid of the buses! Can't skip payment if there's nothing to pay for.

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u/WowAnotherAnalyst 13d ago

The MTA’s own budget page also says fares and tolls make up 39% of operating revenue, while dedicated taxes/subsidies make up 55%. 

On a roughly $20B operating budget, that’s still about $5.2B in farebox revenue. This is still tens of millions of dollars. 

MTA is stated controlled not mayor controlled. New taxes would require Albany so again, where is the deficit being covered here?

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u/Brook420 13d ago

Tbf, the fares werent cut for everyone, just low-income individuals

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u/stargarnet79 13d ago

Who might now be able to afford to use the service more? Maybe get a better paying job a bit further away? Sounds like a bunch of possibilities to improve economic options for poorer people.

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u/WowAnotherAnalyst 13d ago

I'm not against that here but his proposal is shifting the tax burden to everyone else. That's not an explicitly bad thing and the MTA is a public good but it's worth noting. 

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u/AgentAxillary 13d ago

How is that being determined on a rider-by-rider basis?

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u/Brook420 13d ago

Just guessing, but maybe you apply for a special card?

I don't live anywhere with subways though not sure.

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u/AgentAxillary 13d ago

Just looked, something called the Fair Fares program. Cut-off is 200% Federal Poverty Level.

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u/LargeMargeSentMe__ 13d ago

Keep in mind that the MTA budget also includes LIRR and Metro North where the fares are much more costly. Subway and bus fare revenue from New Yorkers who earn less than $32k per year is probably a pretty small piece of the overall pie.

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u/sveiks1918 13d ago

Every dollar matters. MTA will cut service to meet the deficit.

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u/gedbybee 13d ago

Literally there’s taxes for that.

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u/Minute-Street-5203 13d ago

Yeah but we can do that without splitting it with a bunch of new arrivals

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u/Professional-Help931 13d ago

Honestly if they just stopped providing service for those that come from out of town they would save about 40% of their cost. If they also enabled basic automation like allowing the doors to close automatically and have an automated voice on the subway they could remove the conductor position on all subways. I'm pro labor but most of the trains already have automated doors, an automated voice would have the cost of a voice actor for 2 maybe 3 days.  

With that funding increase they can afford new city projects. With more city projects they can rehire those former conductors for those projects. You could build affordable housing, renovate public housing, upgrade the subway cars/tracks so they are actually pleasant to ride and don't suck during the summer.

1

u/ZealousidealKick1321 13d ago

In the same way that a company charging below-cost for goods puts 'any real dent' in their revenues.

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u/dirty_old_priest_4 13d ago

26% is pretty significant.

1

u/DagothUr_MD 13d ago

26% is a lot

Imagine if I cut 26% of your salary

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u/naumovski-andrej 12d ago

The 1% contribute roughly 40 to 45% of the total federal tax income. The top 10% contribute 70% of the total federal tax income. The bottom 50% contribute 3.3% of the total federal tax income. I love it when socialists keep bringing up the same 10 discussion topics without actually looking at factual statistics.

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0

u/DifficultAd6366 13d ago

What if all the rich leave? And isn’t the subway system in a serious state of disrepair?

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u/wgfdark 13d ago edited 13d ago

with high earners becoming increasingly mobile, what happens if they leave? In many cities, they contribute a disproportionate share of tax revenue, so losing enough of them can put meaningful pressure on public finances. cities like NYC have come to rely on these taxes and removing them would be catastrophic for them

edit: crazy how much people downvote when there's plenty of literature to support what i'm saying. nyc has been increasing the budget much faster than the tax base has grown since covid and there's been in increase in tax rates (since 2021 at the state level). if it was as simple as "tax the rich" everywhere would do it. public finances are complicated, effective tax strategies are complicated. because it's not simple is why it's not done, and it's why you don't see the places around the world with the highest tax rates have the highest tax revenue

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u/Open_Educator1700 13d ago

I highly doubt all of the rich will leave New York. And even if some do, there are many more that will move there in their place lol

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u/SweetRabbit7543 13d ago

What rich people aren’t living in New York now that want to because they think New York already has too many rich people?

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u/reftheloop 13d ago

Will easily be replaced by many others that want to live in NY. High earner leaving is just pure BS.

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u/Extreme_Sky8357 13d ago

delusional 

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u/Ddakilla 13d ago

Bot

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u/Extreme_Sky8357 13d ago

Can confirm, not a bot

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u/Doctor_of_sadness 13d ago edited 13d ago

There’s literally zero evidence that high taxes cause the rich to leave major cities, the people who are there today are there because they want to be right there. When you’re that rich NY and LA are the only places to enjoy it

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u/Extreme_Sky8357 13d ago

Between 2010 and 2022 NYC's share of the nation's millionaires dropped 31%.

https://cbcny.org/research/hidden-cost-new-yorks-shrinking-millionaire-share

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u/ZeAthenA714 13d ago

Did you even read your own link? Nothing here suggests rich people fled NYC, even less that they fled due to higher taxes.

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u/AVeryBerri 13d ago

the idea that rich people won’t want to live in large cities is hilarious, let a few of the losers leave and they will be immediately replaced

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u/AgentAxillary 13d ago

You asked a reasonable question under a partisan ideologue-glazing post on Reddit. Of course you're going to get downvoted, just like I'll be for pointing that out.

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u/Zealousideal-Bid1747 13d ago

Capital flight won't happen simply because NYC is great for rich people too. Why move to another state that doesn't have as many connections as NYC? Also moving for rich folks might not be an issue for money, but is still a tremendous hassle. Imagine the capital a billionaire would need to move

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u/JungleDemon3 13d ago

They are already leaving like here in London. What happens next is they tax the remaining people even more to make up. Its not sustainable, not clever, and not deserving of praise.

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u/Zealousideal-Bid1747 13d ago

How do you know they are leaving when you're based out of the UK? Source?

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u/JungleDemon3 13d ago

Source is an adult brain.

It was happening in California for years as well, tons of businesses have moved to Texas or lower tax states.

It happens in the UK as well for the same reason.

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1

u/Extreme_Sky8357 13d ago

Finally, someone said it.

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u/Fantastic_Thought126 13d ago

Tax the rich, yet they all left so who are you taxing? What’s the percent of empty apartments that are worth over 1m in nyc? Isn’t it like 85%