Most places, transit does earn its way, it just fails to collect its earnings. The benefit of transit is reflected in the higher land values of areas served by transit. Rather than allowing private landowners to collect the whole thing, transit authorities could be authorized and directed to impose a land tax to cover what fares don't.
I hope people realize that I was being completely snarky with the title. I've heard that argument so many times (Transit must pay for itself!) it makes me a bit sick...
taxpayer- Some of the current thinking is to have property tax assessments pay for improved transit infrastructure. However, just the capital costs. Buses, and especially rail, loose money operating as well.
Can you provide an example of a transit system in a major metropolitan area that currently does "pay for itself"?
ReplyDeleteCan you provide an example of a mode of transportation that isn't heavily subsidized in one way or another?
ReplyDeleteA subsidy is public money that benefits a particular private company or industry. Public transit, like public schools, is an investment.
ReplyDeletebtw... the auto companies are back at the public trough asking for $50 billion in loan guarantees to build "fuel-efficient" cars.
ReplyDeleteMost places, transit does earn its way, it just fails to collect its earnings. The benefit of transit is reflected in the higher land values of areas served by transit. Rather than allowing private landowners to collect the whole thing, transit authorities could be authorized and directed to impose a land tax to cover what fares don't.
ReplyDeleteI hope people realize that I was being completely snarky with the title. I've heard that argument so many times (Transit must pay for itself!) it makes me a bit sick...
ReplyDeletetaxpayer-
ReplyDeleteSome of the current thinking is to have property tax assessments pay for improved transit infrastructure. However, just the capital costs. Buses, and especially rail, loose money operating as well.
Just the fact that the road in front of your house is not judged on a profit of loss basis is worth a lot.
ReplyDelete