Friday, August 10, 2012
The MTA's Plan to Rip Off Cab Drivers: The Arithmetic of Greed 1.
1. Transfer (the MTA no longer uses the word "sell") medallions at a price of $300,000 with the MTA getting 30% instead 15% of the $250,000 under the current Pilot Plan.
2. Charge both Pre-k and Post-k medallion holders (who earned instead of bought their medallions) 50% to transfer their medallions for $300,000.
You heard that right. 50% - Five Zero - FIFTY PERCENT.
Did I say greed? The industry average for the sale of a taxi medallion (in New York, Boston, Chicago et al) is 5%.
While the MTA would take $150,000 from a $300,000 medallion, in Boston they would get $15,000 from the same medallion.
Conversely, a Boston medallion holder would keep $285,000 from the transfer or $135,000 more than a San Francisco driver.
Even the famous $1,000,000 medallion sale in New York only brought that city $50,000 leaving $950,000 for the medallion buyer and his or her banker.
The MTA justifies itself by claiming that San Francisco needs money. All the rest of these towns don't?
Greed, in context, seems an inadequate word. How about avarice, cupidity, rapacity, craving, lusting or money-grubbing?
Tomorrow: The Arithmetic of Greed 2 or Killing the Future.