I agree with TFA’s premise, but some of the specific arguments present are faulty. Flat vehicle registration fees Excise tax is not flat, and sometimes a luxury tax on top even makes it progressive. These are registration fees paid to the town instead of the state. The storm sewer subsidy The complaint here is that pollution is contributed by commuters / travelers but cleanup is paid by locals. The travelers pollutin…
>The travelers polluting city storm water sewers are paying taxes in the city when they do business in the city, which is why they are using the roads. If there was no reason to come to the city, there would be a lot less stormwater pollution but also a lot less commerce and the city would be worse off.
This is in effect a cross subsidy, making it hard to rationally price pollution. Usage based pricing / taxes are more efficient here. It would be better to lower city taxes and raise road taxes to reflect the cost of pollution. Then, people would either a) drive less or b) drive less polluting vehicles or c) pay the full price of cleanup.
The argument that there is 'more commerce' doesn't hold. If city business (and residents) are subsidizing consumers (e.g. paying for their pollution), the cost of doing business goes up in the city and thus producers have to charge higher prices, reducing consumption. There is no free lunch here unless you steal it from a 3rd party, and in the case of city budgets there is little in the way to prevent that.