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Old June 6th 05, 07:04 PM
Dick Boyd
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Jon Enslin wrote:
> Ed Stasiak wrote:
> > BBC News
> > Sunday, 5 June, 2005
> > http://news.bbc.co.uk/1/hi/uk/4610755.stm
> >
> > 'Pay-as-you-go' road charge plan
> >
> > New charges could be used to tackle road congestion
> > Drivers could pay up to =A31.34 a mile in "pay-as-you go"
> > road charges under new government plans.
> >
> > The transport secretary said the charges, aimed at cutting
> > congestion, would replace road tax and petrol duty.
> >
> > Alistair Darling said change was needed if the UK was to
> > avoid the possibility of "LA-style gridlock" within 20
> > years.
> >
> > Every vehicle would have a black box to allow a satellite
> > system to track their journey, with prices starting from
> > as little as 2p per mile in rural areas.

>
>
> What I don't understand about this is that a basic gas tax already
> taxes those who use the roads more right? So this plan would tax those
> that use certain road even more. Is that worth the costs associated
> with setting up and monitoring this program? Just so you can shift
> revenue from those travelling in the country to those travelling in the
> city?
>
> Jon


Yes, there is a fuels tax. Presently, governments collect between
$0.0111 to $0.061 per mile of travel from each fuel burning vehicle.
That is enough to pay for a road with lane mile costs in the $5 million
to $10 million range with low peaking and high average daily use. A
peaking lane might run $35 million per lane mile and generate only $1
million in gasoline taxes.

Key words in this comparison of prices is the cost per mile. Yes, if
someone drives more miles, he/she pays more total fuel taxes, but the
taxes per mile is the same.

And that is my two cents (per mile) on the issue. Not complaining that
two cents is too much, but that the two cents goes to buy the wrong
thing.

Congestion pricing is aimed to get people to drive off peak or find
alternate transportation.

How much is your time worth? Ten dollars an hour? Would you pay three
dollars toll to save twenty minutes travel time? What values of time
and pricing balance out to make the road free flowing?

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