Auto Warranties Links

Weblogs


Blog Features




Tolls May Be More Fair Than Taxes

images-27.jpgDrivers and politicians tend to be against road tolls because it is believed that they burden drivers with a lower income disproportionately.  However, a recent study by USC and UCLA has discovered that a sales tax may be a greater offender on that front.

The study looked at a 10-mile stretch of freeway in California that encompasses four express lanes on Route 91.  It discovered that, overall; the toll was used more by middle and upper income drivers than by drivers with a lower income.  It also discovered that charging more during hours that are peak helped alleviate traffic.

However, if the highway was financed by a sales tax, the study discovered that these same middle and upper income motorists would have shelled out $26 million less than they would have under a system of tolls.  In the meantime, drivers who are lower income would end up paying $3 million more.

Congestion pricing and tolls aren’t perfect, and the study made a suggestion that lower income motorists who have to travel during peak hours should be given discounted pricing.  After all, lower income drivers are already struggling to afford car costs, such as an auto warranty and car insurance.

Posted on Saturday, August 30th, 2008 at 12:44 pm In Auto Warranty  


1-800-419-3499
Fax 1-800-615-0366
E-mail: info@autowarranties.com