Quote:
Originally Posted by sim
Gas taxes are perhaps reasonably elegant, but they aren't the right solution. Would you only raise this in the region where they are meant to fund said infrastructure? If so, how do you determine that boundary? Why? You will also get some interesting changes in who fills up where.
If not, you've put the costs of congestion onto people that have essentially nothing to do with causing it, i.e. rural residents. Nor do rural drivers contribute to local emissions to the same level or noise. If you are going to use a tax to internalize negative externalities, the tax should best be applied to those that actually cause those externalities.
To ameliorate the perception of HOT lanes being so called "Lexus lanes" (only for the rich), and on mores so on the basis of greater social equilibrium (both economically and socially), the tolls collected would largely go toward improving alternative modes. The portion allocated to roadways would go to maintenance and minor improvements only, not upgrades and additional lanes. Why fund something that created the problem in the first place?
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Lexus lanes is an excellent name for them - thank you. That is exactly what they will achieve, the well off can drive to work unhindered while the rest of the city suffer on an even crappier road.
I agree that a city wide gas tax wouldn't be a good idea. A province wide tax however could be used to fund infrastructure for all - things like improving Highway 2 will benefit everybody directly or indirectly as well as more localised city improvements. Gas taxes do also indirectly target congestion to some extent - your vehicle burns more fuel in traffic.
To be clear though I would only support a moderate tax rate and only if the fund was legally ring fenced forever. I certainly do not want a situation like the UK where tax is 80% of the cost of fuel creating punishing costs dragging everything down, with the money going into a general pot.
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