Ride-hailing services, such as Uber and Lyft, have threatened the taxi industries and public transportation in the past few years all around the country. Public transportation pays for some of the city’s expenditures. Since ride-hailing services have swept the nation, the income for public transportation has went down tremendously.
According to an article in the New York Times, many cities, such as Chicago, Philadelphia, Massachusetts and New York, began to tax Uber and Lyft riders.
Some individuals feel ride-hailing services should not pay taxes because it is not Uber’s and Lyft’s responsibilities to improve the cities.
“That shouldn’t be Uber’s job. That should be our government’s and the city’s job to pay for the streets and buildings,” sophomore black studies major Yseli Estevez said.
Massachusetts was the first state to implement a tax on ride-hailing services, adding a 20 cents tax. Philadelphia taxes 1.4 percent of the ride’s charge and New York is still on the verge of taxing their ride-hailing services.
“I do not think it is fair. We already get taxed a lot,” Philadelphian Uber rider and junior English major Alondra Rivera said.
Manhattan is considering adding a tax on Uber, seeking to charge anywhere form $2 to $5 extra per ride.
“People get on Uber to try to get to work for a reasonable price. If they raise the prices, they are just going to lose out,” Rivera said.
However, the state of New York projects that this extra fee could generate $605 million per year to help the subway system.
“People won’t really notice the extra charge. A lot of companies do it,” Philadelphian Uber driver Danielle Murray said.
Philadelphia’s tax charge for the ride-hailing services is projected to lead the city to raise $2.6 million in 2018 alone for public schools.
Some are upset about the tax because the tax will not apply to taxi companies in select states. Georgia is one of the states where the tax applies to taxi companies as well.
Oregon has allowed the two ride-hailing companies, Uber and Lyft, to function through pilot programs. The state has added a 50-cent tax to provide for inspections and wheelchair accessible cars.
Chicago has calculated their transit fares and it has decreased $40 million in revenue. Parking fees, licenses and permits also contribute to the $40 million decrease each year. Over the years have increased the tax on transit fares. Today the tax fee is 65 cents.
Murray said she is okay with the tax, “As long as the charge is minimal.”
