Tuesday, August 6, 2019

Five Quick Facts, not rumors, about tollroad economics

Five Quick Facts, not rumors, about the economics of a toll bridge:

1. Tolls directly harm state and local tax revenues. Tolls impose an additional cost on all in-person transactions, reducing sales and reducing sales taxes.

2. Tolls are always regressive. Tolls represent a greater portion of disposable income to lower income users than higher income users. And, those with lower incomes are more likely to be compelled by work obligations to either pay the toll and use the road or find less efficient alternate routes.

3. Tolls harm economic competitiveness. The state imposing the toll drives up the cost of everything, placing the affected state or area at a competitive disadvantage compared to areas with toll free transportation.

4. Tolls harm labor mobility. A wage earner is less likely to accept better employment located across a tolled roadway if the wage offered does not cover toll cost.

5. Tolls incentivize law-breaking. Counterfeiters and other black market operators will thrive. Counterfeit tags, tagless vehicles, tag-sharers, tag-concealers and phony transponders will all respond to a tolling regime by finding new and innovative ways to beat the toll.

Read my full review of the Mobile River Bridge SDEIS here.


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