New frontiers in cost-benefit analysis


Headline in the online edition of the Toronto Star

Finding the ‘sweet spot’ on transit taxes: where benefit and cost match up.

I’m no expert on the subject, but I think that when the costs and benefits “match up”, you’ve gone too far…

More seriously, the article is based on weird analysis like this:

“It’s unfair to tax people for parking their cars when there is no real alternative (to driving),” he said.

That sounds superficially fair, but does it correspond to any principle that is more generally followed? How about: It’s unfair to tax people (i.e., charge them) for riding a bus when there is no real alternative. Or, it’s unfair to tax people for getting a passport when there is no real alternative. Why is it that services provided by the government ought to be free by default? Conversely, if “fairness” (defined as not charging people for necessities) is an important principle for the public sector, then why not for the private sector?

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