Apr 26, 2011


sumber : harakahdaily

* * * * * * *


Tolls are a regressive tax, i.e. the charge doesn't vary according to income, and thus affects roads users on low incomes more than it does those who are better off.

Tolls are inefficient - a very large proportion of what is paid in tolls goes into the cost of collecting it.

Tolls are wasteful - apart from the cost of a collection and enforcement bureaucracy, authorities that operate tolls tend to be overmanned and looking for ways in which they can use up the money as fast as it comes rolling in.

Tolls are unfair - in most countries, tolls are paid on top of other taxes on roads users - so drivers are paying twice.

Tolls don't encourage fuel economy or distinguish between cars with different fuel consumption or using "greener" fuels. They lead to more wasted fuel as drivers detour and take longer routes to avoid tolls. It is better to charge for roads through taxes on fuel as this helps to conserve fuel supplies and reduce emissions by encouraging drivers to be more careful with their use of fuel and to car share etc.

Tolls cause some drivers to make longer journeys on less suitable roads which increases congestion and the risk of accidents.

Toll collection causes vehicles to slow down or stop. This is annoying for drivers. It also wastes more fuel, and leads to more accidents as the vehicles approach the tolls trying to get into a lane with the smallest queue and fumbling for cash. Fully electronic tolls reduce these harmful effects, but do not remove them; and in many cases there is a mixture of electronic and cash tolls which can cause more delays and accidents as drivers detour to get into the correct toll lane.

Where toll collection is electronic (using or backed up by cameras), then many drivers are treated as criminals with substantial numbers fined when they fail to pay for any reason.

Tolls are often privately run, and even where they are not there is a great temptation to cash in by selling the toll money making machine. Private operators and their bankers usually make large profits. It is cheaper to pay for roads through either taxes or Government borrowings (which are eventually repaid through taxes).

If there are two areas, one with tolls and the other without, then businesses, potential employees and tourists will prefer the area without tolls. Tolls reduce beneficial "agglomeration" effects as they divide people and businesses.

Tolls, particularly on river crossings, divide communities and create a "wrong side of the tracks".

* * * * * * *

Regressive Tax

What Does Regressive Tax Mean?

A tax that takes a larger percentage from low-income people than from high-income people. A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.

Investopedia explains Regressive Tax

Some examples include gas tax and cigarette tax. For example, if a person has $10 of income and must pay $1 of tax on a package of cigarettes, this represents 10% of the person's income. However, if the person has $20 of income, this $1 tax only represents 5% of that person's income.

Sales taxes that apply to essentials are generally considered to be regressive as well because expenses for food, clothing and shelter tend to make up a higher percentage of a lower income consumer's overall budget. In this case, even though the tax may be uniform (such as 7% sales tax), lower income consumers are more affected by it because they are less able to afford it.

notasemut : baca dan hadamkan. gua sibuk takde masa nak translate. selamat membayar tol!

No comments: