Posted on 12/15/2019 8:06:19 AM PST by Tolerance Sucks Rocks
New analysis of projected provincial gas tax revenues in Ontario has revealed that that source of provincial funding will fall much more dramatically than predicted just five years ago due to increased use of electric vehicles and other factors.
And so, concludes Trent University professor emeritus Harry Kitchen in a new report titled Ontario’s Downward Trend for Fuel Revenue: Will Road Pricing Fill the Gap?, the provincial government must look for other sources of revenues to build transportation infrastructure. Kitchen recommends road pricing, such as tolls and HOT lanes, with funds raised earmarked for future transportation improvements, and dynamic parking levies as the two best options.
It’s Kitchen third report on fuel tax revenues written for the Residential and Civil Construction Alliance of Ontario (RCCAO) and he explained he was not expecting the surprisingly sharp drop in projected revenues as he gathered information from the National Energy Board while researching the topic.
“I did the same kind of analysis I did five years ago and I thought, oh my goodness, look at how much it’s changed,” Kitchen said. “It was about 10 o’clock at night and I said, my God, I can’t believe the difference over this length of time.”
The data showed that the estimated annual provincial gas tax revenue per capita (at the current fuel tax rate) peaked in 2005 at $177; by 2040, that revenue tool will be cut in half to $88. Diesel fuel tax revenues peaked in 2005 and 2011 at $67 per capita and are projected to drop to $35 by 2040.
(Excerpt) Read more at canada.constructconnect.com ...
Yeah, Leftist predictions usually come out 180 degrees the opposite of what they predict.
For instance, as far as I know, these electric cars are more expense and cause as much or more pollution as regular gas cars
PING!
Fortunately toll roads are illegal in my state, from an early provision of law that says the roads in the state shall be free to all.
Budget 2019: Highlights of Bill Morneau's fourth federal budget
Holy crap.
They knew even in the 1840s that toll roads would be a way to oppress people from being able to move around and make a living.
In Colorado they are spending billions of already paid taxes to put in nothing but toll roads for even more tax collection. They spend nothing on roads that are free, only for roads that are tolls.
Then they have the Indiana Toll Road I80/I90 which has to one of the worst maintained roads in the country. Tolls from before I was born, a long time ago....
They could, of course, simply RAISE THE GAS TAX to cover electric vehicles and that would fix the problem for at least the next 20 years...and they know that. (and after 20 years, simply charge a flat road-use fee to register electric cars)
But that is NOT what’s going on. They know there’s a limit to how high they can get away with on the gas tax - but there’s virtually NO LIMIT on what they can charge with road pricing. It’s a new revenue stream and people very easily could wind up paying more to drive on roads than they pay in income and sales taxes combined.
But they need their foot in the door, and that’s why they keep pressing to get it started and making excuses like grandma’s Prius is breaking their bank, when that is NOT the case, not even close.
With all your Californica transplants. You can expect the tolls to start going to the homeless or a free needle program soon, and you roads will cobtinue to get worse.
Already done. We are the capitol of homeless drug use here in Colorado.
People talk about Kali and poop in the streets but Colorado is also there.
oh no! The ‘per capita’ income is lower than before - we need to raise it back up!
Never mind the total revenue is up, don’t look at that.
Also don’t look as the increase in population- which makes for a larger denominator in the calculation- we need you to look at the number we want you to see, so we can make our point.
It needs to be kept at $177 ‘per capita’, so we can take in all that extra $millions
How wonderful. Apparently, unlike lunches, there are free roads.
Take it from a Canadian: Americans aren’t even close to half-way to the height of gas taxes the government can get away with.
Flat road-use fees are simple — and, that’s their only virtue. A fair tax would be proportionate to the cost that each vehicle imposes on the road system. That means that the distance travelled must be factored in. Also, in the case of heavy commercial vehicles, the GVW should be a factor.
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