this post was submitted on 08 Mar 2024
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The "problem" with that tax is that if it's applied fairly, it gets very big very fast. The damage to the road goes up with weight, but not linearly. Not a square factor, either. Not even cube. It's to the fourth power.
Start applying that to long haul trucks and the whole industry will be bankrupt in a month. The implication being that we are all subsidizing that industry with taxes on roads. Including that one trucker with a "who is John Galt?" sticker on the back.
That said, this is also a very good argument for improving cargo trains to the point where most long haul trucking goes away.
Oh well. I guess they’ll just have to go bankrupt then.
And now you starve. None of the stores will stay open long without them.
That should mean they don't go bankrupt though. If their service is vital, people will pay for it even if the prices rise. It would mean an increase in prices for goods admittedly as the stores try to recoup the increased logistics costs, but intuitively I'd imagine the financial impact on the end customer wouldn't be as much because they're paying for the road upkeep either way, just via higher taxes in the current state and via increased prices in the new one.
That's not a supply and demand thing though. There just wouldn't be product to buy because there's no way to get it to the stores. It's less about the bankruptcy and more about availability.
I mean the supply and demand for the trucking companies. Shipping is a vital service, if it had high taxes, it would have to dramatically increase prices for their shipping service, but they shouldn't go out of business because everyone else would still pay those dramatically high prices, because they'd have to