Many
businesses and commuters in New York City
are complaining about a proposed “congestion
tax” announced by Mayor Michael Bloomberg
on Earth Day. The tax would charge trucks
$21 and cars $8 per day to enter the city
between 6 a.m. to 6 p.m. on weekdays.
The
tax will add a substantial cost to deliver
products into New York City, and raise the
costs of operating a business there, especially
a small business.
The
idea of this type of tax during peak hours
has been proposed by some to relieve congestion
in major cities. However, Dr. Michael Meyer,
Director of the Transportation Institute
at Georgia Tech, doesn’t believe it
can work in many places.
“The
only two cities I can see this sticking
are New York City and maybe San Francisco,”
he said, citing their unique physical characteristics.
“In other cities, the businesses and
commuters might just move outside of the
city,” he added.
One
response to the tax might be to make fewer,
larger deliveries, but that has its own
supply chain complications, especially for
large and small retailers with limited storage
space. |