A follow-up comment supporting Colin's post. Ability-to-pay (progressivity, regressivity) is one equity principle. However there are other equity concepts, specifically the benefit principle and the marginal cost principle which are arguably more appropriate to the transportation context.
The biggest problem with the gasoline tax is not that it is regressive, but that it does a poor job of representing either the benefits of road use or the marginal cost of the road traveller to society. For example, a highly fuel efficient automobile driving during rush hour has a much higher marginal cost to society that a somewhat less fuel efficient vehicle driving in the evening or on weekends. The rush hour vehicle causes much greater congestion and causes the highway authorities to build extra capacity.
It's also not clear to me that the gasoline tax (viewed strictly as a tax) is really progressive. If significant numbers of the poor do not use automobiles, then the gasoline tax could be progressive over much of the income spectrum. Or seen another way, the gas tax might be progressive in Cairo and regressive in Dallas.
Gerard C.S. Mildner
School of Urban Studies & Planning
Portland State University
PO Box 751
Portland, Oregon 97207-0751
503-725-5175 office
503-725-8770 fax
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>>> "Leech, Colin" <[log in to unmask]> - 1/14/00 6:58 AM >>>
Vous ecrivez tres bien en anglais.
I think that you are probably correct. In the same sense, the cost of food
(and every other product or service) is also regressive. However, this does
not mean that we should abandon fuel taxes, since they do help achieve some
social and transportation goals.
Perhaps the problem is one of terminology. By calling it "a tax", there is
some implication as to whether it is fair or not. If we label it more
properly as "a user fee" to help offset the costs that motor vehicles impose
on the rest of society and on the environment, then the questions of
fairness ("regressive") disappear. Of course, there are lots of studies
around showing that even the high (by North American standards) fuel taxes
charged in Europe do not fully pay for these costs.
--------------
Colin R. Leech
All opinions personal
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http://www.octranspo.com
> -----Original Message-----
> From: Darbera [SMTP:[log in to unmask]]
> Sent: Friday, January 14, 2000 7:05 AM
> To: 'Universities Transport Study Group'
> Subject: Are petrol taxes regressive?
>
> I suspect road fuel taxes to be regressive. I believe this issue is
> probably well documented. Unfortunately I could not find any data breaking
> down house-hold expenditure on transport by household income class.
>
> I would very much like to have this data for the UK, or for London, or for
> any European country. Does anyone know where I could get it?
>
> Thank you. (and sorry for my approximate English)
>
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