Thursday, November 24, 2011

Another Myth Refuted

(snip) The majority do not want to pay road charges. “That’s because we already pay for the road in gas taxes and licence fees,” you say. Wait. There is another side to that commonly held position. A 2008 Transport Canada study, “Estimates of the Full Cost of Transportation in Canada,” says the country’s annual capital cost for roads is $28.7 billion, with a further $4.9 billion in operating costs and $6.8 billion for land. Total, $40.4 billion. This does not include social and health costs such as accidents and pollution. All the gas taxes, fuel fees, licence fees and vehicle charges cover barely one-third of the $40.4 billion. So, in reality, roads are subsidized. They don’t pay for themselves. The driver isn’t being jobbed. And while gas tax revenues do go into general revenues for the federal and provincial governments — and should be sent to municipalities to manage the transportation network — drivers are not correct in claiming they already pay for the roads. Source Photo by Hamish Wilson

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