There are many types of taxes, and there are different tax systems in different countries. The statistics used in this article come mostly from the U.S. and Canada, since this is where the most study has been done in this area. While the numbers may be slightly different, the same idea should also apply in Australia.
The first time I heard the claim that "cyclists don't pay taxes" (from my employer at that time), I asked myself, "How can this be? My employer is telling me that I don't pay taxes at the same time he is handing me my paycheck with a substantial amount gone to taxes. Am I missing something here?"
Further investigation revealed that my employer, a Certified Public Accountant, felt that I did not pay gasoline taxes or vehicle registration fees. This cleared things up a little bit. The argument now was starting to make sense. Although I did own a vehicle at that time, and had paid to register it (no there was not an exemption for cyclists), and the gas station attendant assured me there was no exemption on gasoline tax for cyclists, I thought, "What if I didn't own a car? Then I would not have to pay vehicle registration or gasoline tax. Hmmm. At this point I promptly sold my vehicle...but I digress...!
Now the question was, "Do vehicle registration fees and gasoline taxes pay the cost of building and maintaining roads?". Further discussion with motorists revealed that this was in fact the issue. And from a economic standpoint the statement makes sense. If motorists are fully paying for the roads with the fees imposed on them (registration and gas tax), then they should have exclusive use of them. After all, there is no such thing as a free ride these days!
Or is there? Pedestrians get exclusive use of sidewalks (footpaths), without paying registration fees for their shoes. Well maybe thats an exception...
And then again maybe not. Gasoline taxes and other user fees do not come close to covering the cost of building and maintaining public roads. In America, this cost is $124.5 billion dollars a year. The money generated from gasoline tax and other sources is $86 billion, or about 69% of the total figure.
"In 1994, goverment transportation revenues totaled $86 Billion (current dollars), covering 69% of goverment transportation expenditures in the same year."
- United States Department of Transportation
The rest of the money comes from the General Fund, which all citizens (even non-motorists) contribute to.
"Goverment spending on transportation is partially financed by revenues from government transportation-related charges, taxes, or fees...general tax revenue used to defray transportation infrastructure costs."
- United States Department of Transportation
"...the cost of building and maintaining roads is still paid out of general revenues."
- Canadian Automobile Association
If motorists were to fully subsidize their own roads, gasoline tax would need to be raised by about $3.00 US/gallon (in addition to existing price and tax).
These are only the direct subsidies that motorists receive from the general public. What if we were to figure in the cost of maintaining a Highway Patrol, the cost of deaths and injuries from car accidents, the cost of damage to our environment, the cost of damage to our health from car exhaust and inactivity, the cost of going to war and using military power to secure our shipping lanes? The costs are then staggering and incomprehensible - and estimated at $126 billion USD. The cost of gasoline tax would then need to be raised by almost $6 US/gallon to cover these costs. Where does the money come from? Not the motorists...
"Air pollution is the most visible and pervasive environmental impact of transportation. and it constituents contribute to ill health, acid deposition, smog, and stratospheric ozone depletion. Air pollutants include:- United States Department of Transportation
- criteria pollutants, such as CO, volatile organic compaonds (VOC), nitrogen dioxide (NO2), lead, ozone, and particulate matter of various sizes.
- chlouroflourocarbons (CFG's), which destroy the Earth's protective ozone layer; and
- toxic pollutants, also called hazardous air pollutants, such as benzene, 1.3 butadiene, formaldahyde, and acetaldehyde.
"Transportations other environmental impacts include increased noise and solid waste, deterioration of water and groundwater quality, damage to habitats, and direct and indirect effects of land use."
- United States Department of Transportation
The real question is, "Why are cyclists required to subsidize motorists?". The answer is simple: marketing. More money is spent on automobile advertising than any other product in the world. People are constantly bombarded with ads for the latest vehicle with the latest gadgets. Motorists are shown as beautiful, healthy people who are always happy and carefree. Nevermind that the cost of buying and maintaining a new car is about the same as an average persons annual salary. Nevermind that your chances of dying in a car accident are 200 times higher than dying in a bicycle accident, and 7 times higher than being the victim of a homicide. Nevermind that motorists are not generally beautiful and carefree - they are overweight and stressed out. Constant exposure to marketing ads makes people forget common sense, and eventually they succumb. It is the same principle used by cults in brainwashing their new recruits, and it is effective. Kids today are brought up this way and have little chance of breaking the cycle.
Almost every motorist I know claims they enjoy driving. But when I ride with them, they are constantly cursing other motorists and driving at top speed to get the drive over with. Did I mention brainwashing?
Motoring mania has taken over the Western world, but the motorists don't want to pay their way. They don't need to because they have the numbers, as almost every American owns a car (or two). Or more correctly, is paying off a loan on a car. They can't afford the motoring lifestyle so they pass the bill onto the non-motoring public. The automobile companies not only own the motorists who take out loans the size of their childrens college tuition to pay for their cars, they own the rest of us too. It is time to shift the cost of motoring to the motorists. It is time to impose user charges on motorists that reflect the full cost of driving. It is time to stop the carnage on our roads and open up our cities as healthy and safe places to live. It is time for common sense to prevail against corporate brainwashing.
Just say yes to higher gas taxes!
Last updated 5 May 1999