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by chumali
2482 days ago
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Fare collection in London is almost frictionless. Almost all public transport can be paid for with contactless debit/credit or prepaid cards. Drivers have no requirement to verify fares and all stations have self-service terminals. Although the administration cost is not zero, it is almost certainly negligible enough that moving to a taxpayer funded model would increase these costs. This is particularly true given that transport budgets are operated at the regional level and would require the introduction of new regional taxes rather than simply relying on exiting tax revenue. (The politics of passing any new tax legislation would be a monumental hurdle in the first instance). Then there is the question of whether a broad tax is more equitable then the current model. I fail to see how this could be the case given the current system retains the price signal and through a system of concessions ensures that those who most benefit from the provision (e.g. professional working in the inner city) contribute the most and effectively subsidise fares for the rest of society. |
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You're talking about the time it takes as you step onto the vehicle. That's not zero, but it's not half of the cost. You also have to fill the card to begin with, but most importantly it causes people to incur an incremental cost for using public transportation, which discourages its use. That's very bad.
> Although the administration cost is not zero, it is almost certainly negligible enough that moving to a taxpayer funded model would increase these costs. This is particularly true given that transport budgets are operated at the regional level and would require the introduction of new regional taxes rather than simply relying on exiting tax revenue.
There are surely existing regional taxes. The collection cost is therefore sunk and the overhead of adjusting the rate is nominal. Moreover, people don't like paying taxes, but people don't like paying fares either, so it balances out -- or comes out in favor of using taxes because in that case the cost is lower when you don't have the overhead of doing fare collection (and you have the overhead of tax collection either way).
> Then there is the question of whether a broad tax is more equitable then the current model. I fail to see how this could be the case given the current system retains the price signal and through a system of concessions ensures that those who most benefit from the provision (e.g. professional working in the inner city) contribute the most and effectively subsidise fares for the rest of society.
Professionals working in the inner city don't pay different transit fares than janitors working in the inner city (and if they did you're just imposing income tax but calling it something else and paying more overhead to collect it), and you don't want a pricing signal here because pricing is a method of rationing scarce resources but we want people to use public transit as much as possible.