Taxis, death, and taxes…
The state of Massachusetts is preparing legislation to tax ride hailing apps such as Uber and Lyft some 20 cents per journey, of which 10 will go to the state administration and city councils, five to a state transport fund, and five to subsidize traditional taxi drivers who have been hit hard by the growth of ride sharing. The payment will not be paid directly by passengers or drivers but by the platforms that provide the service, although this may well end up being reflected in commissions and tariffs that passengers and drivers are charged.
State governor Charlie Baker, Republican, says the five cents will go to taxi drivers until the end of 2021, after which the 20 cents will be shared out between the state and cities for five years more, with the tax disappearing at the end of 2626.
But the tax has angered some taxi drivers, who are demanding a ban on Uber and company, charging that they are not subject to the same rules and requirements, saying they are breaking the law. Meanwhile other transport apps, such as Boston’s Fasten, have objected to the idea that they can be forced by the state to finance their competitors.
The idea of subsidizing traditional taxis in this way is certainly open to question. If the fact we all carry smartphone means we can improve the way we move around, then surely the state needs to recognize and accept this, helping taxis adapt by gradually removing the restrictions on them.
Helping drivers pay their license fee, which can cost many thousands of dollars on the private market, with public money is tricky. In the United States, taxi licenses have been one of the most profitable investments for many years, which raises the question as to what point such practices should be effectively rewarded.
Some states in Australia are seeking to compensate traditional taxi drivers for the sudden drop in the value of their licenses by recognizing that times have changed and that so can the rules, as well as that the license system has actually worsened the service for users.
For the moment, it seems clear that taxes and death, are the only things we can be sure about in this life. The taxi is dying, but the state wants to continue taxing it, passing them on to its successor. If nothing else, this shows that the taxi as we have known it for so long is on the way out. Financing part of the transition, an industrial restructuring process if ever there was one, through taxes is open to question, but in Massachusetts, it will soon be a reality.
(En español, aquí)
