Comments on: Study: OC Taxes More Regressive Than Tolls http://la.streetsblog.org/2008/08/20/study-oc-taxes-more-regressive-than-tolls/ Covering Los Angeles's livable streets movement Sat, 21 Nov 2009 21:23:58 -0800 http://wordpress.org/?v=2.8 hourly 1 By: calwatch http://la.streetsblog.org/2008/08/20/study-oc-taxes-more-regressive-than-tolls/comment-page-1/#comment-2030 calwatch Thu, 21 Aug 2008 05:47:06 +0000 http://la.streetsblog.org/?p=1052#comment-2030 On the other hand, transit riders overwhelmingly benefit with this measure. The majority of money is going to transit, and the money that goes for truck lanes, local streets, and signal synchronization also benefit transit riders through improved goods movement and improved pavement quality for their bus rides. With the fare freeze, the transit rider which uses a monthly pass saves $156 over the year between 2009 and 2010. This covers the sales tax increase for 3 to 6 years, depending on whose numbers you believe (I use $50 because that is more realistic than the LAEDC's $25). This period is even greater for students and seniors, who will have the lowest fares in the country when the fare freeze for them expires in 2014. The primary people who are going to get the greatest impact on their household budget are the lower middle class that drive in from the Antelope Valley, and those with long commutes to their jobsites. They will pay an extra two cents or more on every gallon of gasoline they use, and will probably never be able to use the transit paid for unless they live closer (since Metrolink fares are not being frozen, nor is a local bus ever going to be competitive for 60 mile commutes to locations outside the main hubs). Transit riders get more rail, lower fares (relative to inflation), and better roads for their buses to go on. On the other hand, transit riders overwhelmingly benefit with this measure. The majority of money is going to transit, and the money that goes for truck lanes, local streets, and signal synchronization also benefit transit riders through improved goods movement and improved pavement quality for their bus rides. With the fare freeze, the transit rider which uses a monthly pass saves $156 over the year between 2009 and 2010. This covers the sales tax increase for 3 to 6 years, depending on whose numbers you believe (I use $50 because that is more realistic than the LAEDC's $25). This period is even greater for students and seniors, who will have the lowest fares in the country when the fare freeze for them expires in 2014.

The primary people who are going to get the greatest impact on their household budget are the lower middle class that drive in from the Antelope Valley, and those with long commutes to their jobsites. They will pay an extra two cents or more on every gallon of gasoline they use, and will probably never be able to use the transit paid for unless they live closer (since Metrolink fares are not being frozen, nor is a local bus ever going to be competitive for 60 mile commutes to locations outside the main hubs). Transit riders get more rail, lower fares (relative to inflation), and better roads for their buses to go on.

]]> By: David Pulsipher http://la.streetsblog.org/2008/08/20/study-oc-taxes-more-regressive-than-tolls/comment-page-1/#comment-2020 David Pulsipher Wed, 20 Aug 2008 19:38:50 +0000 http://la.streetsblog.org/?p=1052#comment-2020 this just in, the OC more regressive than trolls. this just in, the OC more regressive than trolls.

]]> By: Matt Gleason http://la.streetsblog.org/2008/08/20/study-oc-taxes-more-regressive-than-tolls/comment-page-1/#comment-2018 Matt Gleason Wed, 20 Aug 2008 19:21:59 +0000 http://la.streetsblog.org/?p=1052#comment-2018 It's not that the BRU considers sales taxes regressive, its that everyone does. Economists, public finance scholars, policy people, advocates, everybody. Low income folks have (obvioulsy)lower incomes, and every dollar is that much dearer. Their spending is also (proportionally) more likely to be taxed. And by passing this tax, those who live without autos will be subsidizing highway spending. I don't think I need to draw a demographic profile of the typical car-less household. It's not that the BRU considers sales taxes regressive, its that everyone does. Economists, public finance scholars, policy people, advocates, everybody.

Low income folks have (obvioulsy)lower incomes, and every dollar is that much dearer.

Their spending is also (proportionally) more likely to be taxed.

And by passing this tax, those who live without autos will be subsidizing highway spending. I don't think I need to draw a demographic profile of the typical car-less household.

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