Thursday, February 12, 2009

Free public transit - a good stimulus

This is not as far-fetched as it looks. On average, the fare box covers only one-third of the cost of a typical mass transit ride. The rest is made up with dedicated taxes, subsidies from state and local governments, and tolls.

Clearly, if these sources cover two-thirds of a ride, how much do you think taxes, subsidies and tolls would have to rise to take over the remaining third? The answer: not much.

Some of these funds can come from Washington's stimulus package. MarketWatch

Discussion also carried by SLOG

No comments: