Study Finds Tolls More Equitable Than Taxes

Politicians and drivers often oppose road tolls on the grounds that they burden lower-income drivers disproportionately, but a joint study by UCLA and USC has found that a sales tax (the typical funding mechanism for transportation) may actually be a greater culprit on that front.

The study examined a 10-mile stretch of highway in California encompassing four express lanes on State Route 91. It found that, on the whole, the toll road was utilized more by upper- and middle-income drivers than by lower-income ones. It also found that congestion pricing - charging more during peak hours - helped mitigate traffic.

Yet if the highway were funded by a sales tax, the study found that these same upper- and middle-income drivers would have paid $26 million less than they would under the toll system. Meanwhile, lower-income drivers would end up paying $3 million more.

Tolls and congestion pricing are not perfect, and the study suggests that lower-income drivers who must travel during peak periods be granted discounted pricing or travel credits, similar to practices used by utility companies.

Study Concludes That Tolls More Equitable Than Taxes for Road Improvements (Green Car Congress)

Comments

[LM]

Tolls are far better at getting people who actually use infrastructure to pay for it. Sales taxes tend to be very regressive.

[rob]

Sales taxes always hurt the poor and middle class more because they spend all the money they earn, wheras the rich can't possibly spend all their money and instead invest it. Then they pay just 15% on the capital gains and dividends while middle class taxpayers who actually earn their money pay a higher marginal rate.