Canada PoliticsA cross-border fee to pay for transit?
Jurisdictions across the country are embroiled in an ongoing debate about how to pay for road and transit infrastructure deficit of over $100 billion.
Last week, for example, a panel struck by Ontario Premier Kathleen Wynne, recommended that the province raise gas taxes by up to 10 cents per litre to pay for the much-needed upgrades.
[ Related: Why road tolls actually make good economic sense ]
In other provinces, governments have considered tolls, property tax increases and even insurance levies.
A Vancouver-based city planner, however, has a unique idea: he's suggesting that Translink -- the organization responsible for the regional transportation network of Metro Vancouver -- charge Canadians a cross-border fee of $5.
According to the Surrey Leader, a U.S.-based think-tank believes planner Eric Doherty's scheme could help Translink raise $30 to $45 million a year.
Toll all the border crossings first so drivers who nip across the line to buy cheap gas and avoid paying fuel tax to TransLink as well as B.C.'s carbon tax would have less reason to do so.
One of the problems confronting TransLink is that its revenue from the 17-cent-a-litre gas tax is declining, in part because of cross-border gas tax dodgers.
"There's a perception that whatever we do needs to be fair," Doherty said. "And it's not fair that people are evading paying their fair share of taxes."
In 2011, there were approximately 50 million trips by Canadians to the United States. A $5 charge per trip and tax revenue gains with regard to lower levels of cross-border shopping could certainly help jurisdictions make a dent into their massive infrastructure deficits.
[ Related: Let’s be good Canadians and not go cross-border shopping ]
Is it an idea that policy makers could actually adopt?
Earlier this year, there was a nationnal uproar when it was learned that the U.S. Department of Homeland Security was considering charging Canadians a 'crossing fee' at all land borders.
What would Canucks think about about Canadian officials charging them such a fee?
Let us know your thoughts in the comment section below.
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