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by jakelazaroff
460 days ago
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> Meanwhile disproportionately taxing people from outside of the jurisdiction is another disadvantage of congestion pricing, because it's taxation without representation and thereby creates a perverse incentive for the local government to use an inefficient system specifically because it taxes people without a voice in the relevant government. Is it also “taxation without representation” when NJ Transit charges me a fare to go to New Jersey or to drive on the Turnpike? Infrastructure costs money and the people who use it should help pay for its upkeep and externalities. |
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Is it a tax, i.e. a fee charged by a government? Yes.
Do you have a vote in that government, as a non-resident of New Jersey? No.
It's taxation. Without representation.
This why roads used in interstate travel are one of the few specifically enumerated powers of the federal government (the constitution calls them "post roads"), and funding them from general federal revenue rather than tolls is completely appropriate.
> Infrastructure costs money and the people who use it should help pay for its upkeep and externalities.
Infrastructure is dominated by fixed costs. Amortizing fixed costs per-use is economically inefficient because it deters productive uses whose value exceeds the (negligible) incremental cost but not the (sunk) amortized fixed cost.
This operates to the extreme in the case of mass transit because the incremental cost of mass transit use is negative, since its use remove congestion from the roads. Paying people to use it would be an obvious perverse incentive, but paying for a collections infrastructure in order to deter people from using it instead of just making it free is an obvious own-goal.