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Are Toll Roads Double Taxation?

Supporters of higher taxes and inefficient government are trotting out the old "double taxation" canard when arguing against congestion pricing and toll roads. It's a great sound bite, but it's faulty logic.

Toll opponents falsely argue that tolling is a “double tax” because motorists are “already paying at the pump”. Toll opponents’ logic is faulty because taxpayers are already paying multiple taxes for transportation:

- twice at the pump (federal and state gas taxes)


- three times at the cash register (portions of state, county, city sales taxes are used for roads)

- twice on property taxes (portions of county and city property taxes are used for roads)

- once when they buy a newly built home (many cities impose impact fees for roads)

- twice when they register their vehicles (state and some counties)

Additionally, toll opponents “double taxation” argument inevitably leads to the following illogical positions:


- Roads can only be funded with one and only one revenue source. Opponents should choose wisely which source because they only get one pick otherwise it's "double taxation".

- Double taxation exists in K-12 public education because schools are funded with state income taxes, local property taxes, federal income taxes, state liquor taxes, and fees.

- Double taxation exists in nearly every government operation since very few government programs rely on a single source of revenue.

Finally, if imposing a toll is a form of “double taxation” because we are already “paying at the pump”, then wouldn’t increasing sales taxes – which is what toll opponents want to do – be a form of “double taxation” since we would be paying at the cash register as well?


Congestion pricing -- a form of tolling that charges higher tolls during rush hour and lower or zero tolls during off-peak hours -- provides an incentive for commuters to change their driving habits. When commuters telecommute, car pool, leave earlier or later for work, or live closer to work, Utah can spend less on transportation in the long run. Congestion pricing is more than just a funding mechanism but rather a means to incent commuters to use transportation infrastructure more efficiently.

I'm a rebel, soul rebel
I'm a capturer, soul adventurer

See the morning sun,
On the hillside
not living good, travel wide

Said I'm a living man
I've got work to do
If you're not happy, children
Then you must be blue
Must be blue, people say

I'm a rebel, let them talk,
Soul rebel, talk won't bother me
I'm a capturer, that's what they say
Soul adventurer, night and day
I'm a rebel, soul rebel
Do you hear them lippy
I'm a capturer, gossip around the corner
Soul adventurer. How they adventure on me

But, see the morning sun,
On the hillside
not living good, travel wide

Said I'm a living man
I've got work to do
If you're not happy, then you must be blue

I'm a rebel, soul rebel
I'm a capturer, soul adventurer
Do you hear me
I'm a rebel, rebel in the morning
Soul rebel, rebel at midday time

Bob Marley,

Thanks for posting the lyrics to "Soul Rebel". I don't see what this has to do with congestion pricing, but I love the song.

If Utah Republicans really want to assume the mantel of fiscal conservatism, they have to rally around proposals like congestion pricing.

That's one of the biggest problems with transportation policy nationally: it's stuck in the 1950's. We're told the solution is to build more capacity by both the freeway and mass transit extremes who them monopolize the discussion bickering over whose capacity we need to build. In the end it's a losing game. We'll never build capacity as fast as demand grows, and we're already behind.

Our transportation policy need to start including some real policy. Educate Utahns on the financial benefits of living near where you work. (I figured that someone who lives in Utah County and commutes to Salt Lake City would negate the cost savings on their home within 5 years in wasted gas, time, and parking charges.) Start offering employer incentives for telecommuting. We can't win this game by only building capacity: we also need to decrease demand.

There are reasons that most of the business world has standardized on an 8am to 5pm (-ish) schedule. What analysis has been done on the cost to businesses that shift hours, AND to those businesses to which they provide services? How do those costs compare to the savings on transportation costs by policies like congestion pricing?

Are we in danger of looking at transportation as an "expense" rather than an "investment in the economy"?

Working at a company that spans 4 times zones, I see some of the inefficiencies that occur when I have to wait a day, or put off to a less convenient time, critical communications because someone back east has already gone home for the day. There are lots of opportunity costs associated with shifting schedules, both within, and across companies. Many of those costs won't even be considered by most small business owners, until they already commit to shifting schedules. Even after that, many businesses may take a long time to become aware of those costs.

Dave Duncan

Transportation, like any other government activity, is both an expense and an investment. When our sales taxes for transportation increase by another $500 million to $1 billion per year, you'll understand the expense part a lot better.

Of course, if you work for a company that builds roads or provides goods and services for roads, you won't see this as an expense at all but rather as a revenue stream.

Some local governments are going to a four day week. This is good for customers of government services and employees as well. It also helps the traffic situation because employees are on the road one less day per week and are not commuting during peak times on the other four days.

If local governments can make these changes, private business should be able to do it even better.

Telecommuting is becoming more popular, and telecommuting does not mean someone has to telecommute every work day. Just one day per week reduces that person's impact on roads by 20%.

I WOULD JUST LIKE TO SAY THAT CHARGING ANY TOLL ON A FEDERALEY FUNDED HIGHWAYS (SUCH AS I-15 HOV LANE)IS IN MY OPIONEN ILLEAGAL BY THE STATE
THESE INTERSTATE HIGHWAYS ARE ALL FUNDED BY THE FEDERAL GOVERMENT AND ARE ALL BOUGHT AND PAYED FOR THROUGH YOUR FEDERAL TAXES.
AND IF YOU THINK YOU HAVE A CONGESTION PROBLEM ON THE FREEWAY NOW JUST WAIT TILL EVERYBODY HAS TO STOP AND PAY A TOLL
NOTICE THE WORD (FREE WAY)
NOT FOR LONG!!
SO WAKE UP PEOPLE!!
WE HAVE NO SAY OVER THIS,
DON'T YOU ALL THINK WE BETTER WAKE UP AND SMELL THE COFFEE AND SAY NO MORE
(COMMON SENCE)
DOSE ANYBODY KNOW WHAT THIS IS ANYMORE??????????

Your post has several logical and factual flaws.

First, there will be no toll booths. Everything will be done by transponder. For more information go to
http://en.wikipedia.org/wiki/Ez_pass

Second, your "freeway" comment has no merit because we currently pay state and federal gas taxes to drive on the "free way". As Milton Friedman (RIP) once said, there is no such thing as a free lunch (or a free way, at least not in the way that you describe it).

Third, you are correct that current federal law prohibits tolling on existing interstates, but that will change. Before you argue that it is wrong to impose tolls on roads that have been paid for with gas taxes, don't forget that we continue to pay gas taxes on roads that have already been paid for. It's not like we can buy tax-free gas to drive on roads that were paid for many years ago.

THERES MY POINT (COMMON SENSE)
I HAVE BEEN A TRUCK DRIVER FOR OVER 25 YEARS, I HAVE BEEN ALL OVER THE COUNTRY AND SEEN ALL THIS DOUBLE TAXATION SO CALLED TOLLS
AS FOR #1
YOU SAY EZ PASS NO TOLL BOOTHS, WELL EZ PASS IS ALL OVER THE COUNTRY,
TRANSPONDERS ARE FINE FOR THE FOLKS THAT CAN AFFORD TO SET UP AN ACCOUNT WITH THE STATE BECOUSE THATS THE WAY IT WORKS, YOU DEPOSIT AN AMOUNT OF MONEY IN YOUR ACCOUNT AND IT IS DEDUCTED AS YOU GO.
WHAT DO YOU THINK THERE GOING TO SEND YOU A BILL IN THE MAIL, NOT LIKELY.
SO WHAT ABOUT EVERYBODY ELSE OUT OF STATERS ECT.
THERE WILL BE TOLL BOOTHS THERE HAS TO BE.
AS FOR #2
YOU JUST SAID IT, WE ALREADY PAY TAXES FOR THE ROAD WHEN WE BUY GAS
STATE AND FEDERAL, THATS TWICE SO WHY NOT MAKE IT THREE????????????
FYI
ONE COMMERICAL TRUCK PAYES OVER $12.000 A YEAR IN ROAD TAXES, THE NUMBERS ARE ASTRONOMICEL IF YOU FIGURE IT OUT,THIS IS CRAZY!!!!!!
YOU KNOW THEY SAY WE NEED MORE ROADS TO KEEP UP WITH THE POPULATION, WELL WHATS UP, IS THE GROWING POPULATION NOT PAYING THERE SHARE OR WHAT SEEMS TO ME MORE PEOPLE MORE TAX MONEY
WHERES THE MONEY GOING??? APPARENTLY NOT TO BUILD ROADS.
I AM SORRY IF I SOUND TO BE ANGREY ABOUT THIS, BUT I AM
ALL I AM TRYING TO DO IS GET EVERYBODY TO LOOK AROUND THE CORNER BEFORE YOU MAKE THE TURN,
BECOUSE ONCE THE TOLLS ARE THERE THEY WILL NOT GO AWAY,THEY WILL JUST GET HIGHER EVERY YEAR

OK, let's go through this one more time.

Practically every argument that the trucking industry uses against congestion pricing is even more applicable against the trucking industry's counterproposal, which is to raise general taxes through the roof.

You keep using the "we already pay at the pump argument", but then you guys want to raise additional sales taxes to build roads. So, why is congestion a double tax but your increased sales tax is NOT a double tax? Please answer this one.

If people can't afford to buy EZPasses, how do you expect them to annually pay $200 to $400 in sales taxes that will be needed to build the new roads?

Actually, the growing population is paying their "fair share", more so than the trucking industry. At one time, user fees such as gas taxes covered state highway costs. Now they don't and the burden has been shifted AWAY from the trucking industry to the general public.

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