Tuesday, May 03, 2005

Finally my Proof on the Inefficiency of Toll Collection

Our dispute over Toll Roads may have digressed a bit. First I want to clarify that I am not against collecting money to pay for the roads. But I get pissed when it's done inefficiently (as is the case of toll roads) or if the road is already receiving other tax dollars in addition to the tolls, or if the tolls don't even go to paying for the road (like in the case of the toll hike for the Dulles Toll Road which is BS!).

Finally I found the proof I was looking for in this article The Administrative and Compliance Cost of manual Highway Toll Collection

Here's the Exec Summary:

The administrative and compliance cost of the US income tax system has been estimated at between five and seven percent of revenue, we estimate that toll collection costs to be between 15.3% and 41.6% of revenue during rush hour and between 11.3% and 19.1% over an entire weekday.


So Brad, if you like paying $2 of your proposed $10 toll to directly to the attendant, then go ahead. I'd prefer to pay just $0.70 cents and have my $10 toll lowered to $8.70 by having it collected through either a Gas Tax or the Income Tax.

Which is a nice transition to my commentary on the tax code and getting rid of the Income Tax. Brad, I think you'll agree with this Consumption based approach to tax collection.

2 Comments:

At 5/04/2005 2:04 PM, Blogger Alexander Romero said...

Rats!! I was hoping you wouldn't read the article that closesly. Yes, I saw it was from 1994, but left that information out of my post.

Bravo to you Brad for checking sources. Anyway, I'll find a more up to date one.

I still believe that the overhead to collect tolls is more expensive than to collect taxes the normal way.

 
At 5/04/2005 9:15 PM, Blogger Alexander Romero said...

Excellent point Hung'rr!!!

So I guess there logic is like this, we're going to charge you to get on to a road, where you are not allowed to use some of the lanes, and the money we collect, isn't even going to improve the road.

Instead we are going to put it into a metrorail system (which by the way, I won't be around to use!).

This is completely F*#% up!

 

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