Wednesday, May 30, 2007

Regional Road Taxes

Hattip: NZ Herald

Oddly enough I'm actually not against the new regional road taxes -
they do introduce some oddities into the market equilibrium due to the arbitrary boundaries involved but overall they do help to move more towards a user pays environment.

Which is where my real objections lie - the remaining general fuel taxes. Because if each region actually was retaining the fuel tax paid within its boundaries Auckland would now be able to introduce a subsidy - not the 10c tax hike.
The inefficiency is shown through the need to place a regional fuel tax on the motorists of the region which already subside most of the reat of New Zealand.

Which is endemic to the issue of the Labour party and its governing style; the inefficiencies created through the income allocation and redistribution performed keep needing more and more to occur to iron out the imbalances created.
There is a shortfall in spending on Auckland roading infrastructure because the Labour party has decreed that there should be, not because the consumers in that area aren't already paying for it.
I think the regional tax is a great idea - but the existing slush fund of fuel taxes should be scrapped first...

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