Is this not a very regressive tax? No billionaire in manhattan is going to feel this but every single cab driver, or blue collar worker will have to deal with this.
Cab drivers will pass it on to passengers as part of the fare, and those passengers probably tend to be wealthier. Those who can't afford cabs, and many who can, will be more likely to take public transit (which is the point).
If it actually makes more money for better public transit I would consider it a success. And whether or not that happens, it'll reduce traffic in Manhattan which I think most people would also agree is welcome.
You think the money collected will fix one pothole in NY, one MTA track, one subway signal? You think traffic signals will be replaced? Or street marks will be repainted? The money collected will be spent on more bureaucracy.
It is regressive in the sense that car owners will now need to take public transportation. Said public transportation also gets more funding. This is perfect for a city with 5 min subways from NJ to Manhattan. More people should be taking this.
I would argue that this is the perfect kind of tax - if the city already has a robust public transportation system.