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2011-04-05

Congestion tax is fanciful

Comments on John Stanley “Congestion tax – the great traffic jam breaker”, 5/04/2011, http://www.businessspectator.com.au/bs.nsf/Article/Traffic-congestion-roads-infrastructure-tax-pd20110405-FM3Y9?OpenDocument&src=sph

It is fanciful to have a congestion tax in cities.

While some people talk about such a concept, it is a flawed and impractical approach. It is never clear whether it is the fault of those people who use the road, or it is the failures of government due to poor planning and/or management, that cause or result in congestions.

Congestion itself is already a cost or tax on those people who are caught in congestion.

In the unlikely event such a tax is introduced, it can be perceived not only as a government revenue measure and tax grab but also as government’s disguise or finding an excuse for its poor management. Further, government may deliberately create more congestions or more areas of congestion to simply raise more revenue.

Once that becomes clear, isn't it the case that the fanciful idea of congestion tax dead in the water already?

In summary, congestion tax might be a good theoretic and economic concept, it is a naïve thinking and nonsensical idea after all.

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