They are very regressive unless there are income-based credits, which adds administrative complexity.
Rich people pay the tolls without a second thought. For the poor they are yet another obstacle to trying to make ends meet.
This is just a general argument against constant prices for everything though. Charging $1/lb for bananas is regressive. Charging $3/gallon for gas is regressive. Charging $10 for a t-shirt is regressive. Etc...
Correct.
Tolls are a regressive tax on the working class. The rich don't even need to use the roads as much because they have other people delivering for them. When they need the road system, the tolls are nothing to them.
The working class, which are generally required to be driving to survive, are left holding the bag for tolls. In places with bad public transit, tolls are just a forced wealth transfer from working class to private firms managing the tolls.
If you have two lanes and want three lanes, you could build the third as public, or as toll. If you build as public, it comes out of taxes, such as the gas tax. If you don’t have enough public money, perhaps you increase the tax. If you build it as toll, you can bond the construction and pay for it with tolls.
At least in theory, this means the toll lane accomplishes the same total road throughput, but shifts the entire cost of its construction to its users instead of depleting public funds. It then appears regressive, but is arguably progressive.
Well if the government raises more revenue from tolls, they can raise less from other regressive taxes or just redistribute that revenue to lower income brackets.
During covid the IRS sent everyone a check. No reason this also can't work at a state level and just have toll funds sent out as checks to lower income brackets.
> For the poor they are yet another obstacle to trying to make ends meet
Only if there is no other way for them to get from point A to point B. If there is, it’s a time vs $ value question to the driver and not regressive, nor an “obstacle”—it’s simply a decision.
i think it is funny how this critique only comes out to play when people dislike a thing for other reasons but want to project a high-minded concern for the poor.
Or if there are practical, affordable, alternatives.
If there is low cost public transit available, then a toll could be an incentive to use public transit instead of driving. But if there is no other viable transportation option, then it is effectively just a regressive tax.
This approach is why carbon taxes won't work. Tax carbon, then credit it back to a majority of the population because "they can't afford it". Leaving the people who can afford it to not reduce their carbon use.
Thus entirely defeating the point of taxing it in the first place.
If you want less driving, make it more expensive. Yes, some people will be in unfortunate situations where they can't afford it, but that's the point.
Edited because I admit original statement below is incorrect.
"You could say they are a flat tax since every driver pays the same per usage. You could even argue it is a progressive tax since richer people use toll roads more. The only way you CAN'T describe a toll is a regressive tax. Words have meaning."
The regressiveness issue of tolls is effectively a nitpick compared to the broader more comprehensive issue of how to we create an affordable transportation system for the working class and how do we raise the revenue to fund that through taxes.
The dominant automobile oriented transportation system is very unaffordable and requires high costs of entry. The best thing we can do to make transportation more affordable in general is giving people more options aside from the car. Taxing the wealthy in order to raise revenue for public transportation and active transportation options dominates any sort of regressiveness issues around road tolls and less traffic makes buses more effective.