I reported in an earlier post (“NYC Cab Drivers Make $10.83 An Hour”) on the amount of money taxi drivers actually make. This post was published during the days of the old fare (a new one went into effect on September 6, 2012.)
The new fare, according to the Taxi and Limousine Commission, will result in the average fare going up by 17%.
So, assuming a like increase in wages, we can calculate that, as of October 8, 2012, taxi drivers will be making :
$10.83 (old wage) + .17 (latest increase = $1.84) = $12.67 an hour.
(How to characterize this wage — good, bad, or indifferent — I leave to the reader’s judgment. The wage estimate, however, should be considered as close to accurate as is possible.)
It should be remembered, however, that, as cab drivers are deemed “independent contractors,” they are charged almost twice as much in Social Security taxes as are regular employed workers. That fact makes the hourly wage lower than it seems, since a larger portion goes for taxes than in other cases. By my rough estimate, the wage should be adjusted about 5% downward, in order to accommodate the the larger tax burden.
So, let’s say drivers make the equivalent of $12.67 per hour less 5%, which is (.05 x $12.67) $.63); therefore, drivers make the equivalent of what a regular worker making $12.04 per hour makes.