Taxes for More Taxes August 14, 2007 Nate Bailey Nate Bailey After the Bridge to Nowhere, few government spending programs should come as a surprise. Yet this one still pulls it off. From the AP via Yahoo! News: The federal government has agreed to pay $354 million to New York City to help it launch an ambitious plan to reduce traffic by charging tolls for driving into the busiest parts of Manhattan. … [NYC Mayor Michael] Bloomberg’s plan would charge cars $8 and trucks $21 to enter Manhattan south of 86th Street on weekdays between 6 a.m. and 6 p.m. So, for those of you keeping score, those are federal tax dollars being used to fund the implementation of a new state/local tax. That doesn’t quite sound like what the founders had envisioned American federalism to become. Worse yet, these funds are seen as a boost to the Bloomberg plan, which has faced significant opposition from New Yorkers who already feel grossly over-taxed. Go figure. New York’s state and local tax burden is the 3rd highest in the nation. It’s not everyday that you see this tax-for-a-tax spending. Except, of course, for the $11.1 billion in taxpayer money that the IRS spends per year to collect even more taxpayer money. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for Federal Tax Policy