Comment 115260

By kevlahan (registered) | Posted December 01, 2015 at 10:28:11 in reply to Comment 115259

I guess the idea is that since the municipal streets are free to use for motorists (paid out of property taxes), transit should be free to use as well.

The system we have now means that non-drivers are subsidizing drivers, similarly for free parking. A true market driven solution would charge everyone according to marginal cost. For example, non-drivers would pay for the roads necessary for delivering goods and services via the road charges built into the price they pay for those goods and services (which would theoretically lead to more efficient goods transport).

But we are very far from a market-driven solution for roads and there are other societal considerations that mean it is better for some services to be paid out of general taxes (e.g. libraries or schools), e.g. positive externalities that mean everyone benefits not just the direct consumer.

It is not obvious the best way to charge for various municipal services: general taxes, per service user fees on an annual basis, or a per use fee.

Comment edited by kevlahan on 2015-12-01 10:28:34

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