“GVRD to ponder tolls, fees on drivers”- The Province, February 22, 2007, Frank Luba and Jack Keating
http://www.canada.com/theprovince/news/story.html?id=3110a796-7ccc-4363-8281-436a0bbcb44e&k=66306&p=2
Summary
The Greater Vancouver Regional District is considering “road pricing” i.e. imposing tolls on motorists in the Lower Mainland for the usage of roads and bridges. The public policy objectives associated with the aforementioned taxation are to reduce greenhouse emissions and cutting down on traffic congestions. The suggestions include tolls on roads and bridges, and paying for the distance travelled. In London, England, drivers pay a toll of almost $20 per day to drive to Downtown. Drivers are not particularly pleased with the idea though. This does not come as a surprise because extra cost will be imposed in addition to fuel taxes, licensing, insurance, gas and parking. Some drivers even said that they would limit their choices of destination if the suggestion does come into effect. Other drivers said they would resolve to public transit. It is quite clear that the majority of the residents would oppose it as this will create a burden on their budgets.
Relationship and Reflection
This is a typical taxation policy by the GVRD to fulfill two economic objectives. One is to reduce greenhouse effects which are believed to be a cause for global warming. The other objective is to look for ways to control traffic congestion. “Road pricing” sounds like a very direct approach to solve the problem. In this situation, the government hopes to influence potential motorists by discouraging them to drive. This can be achieved through introducing a toll fee. Here is an example of the benefits-received approach to taxation. This approach proposes that individuals be taxed on the basis on the benefits they received from the government. This is also an example of a direct tax which is one imposed on the individual who should pay the tax.
The collection of toll has been practiced by many countries even though it might not be easily acceptable at the beginning. Theoretically, it should solve the problem of pollution and traffic congestion in addition to generating revenue for the government. However, it might create financial burden on citizens, especially middle class families. Nevertheless our dependency on private transportation leads us to believe that toll collection might be the only way to cut down pollution and traffic.
posted by Tiffany King @ 1:23 AM
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