The Folly of Congestion Charges

Image credit: Hindustan Times

All over the world governments are turning to congestion charges. These taxes are supposed to achieve two aims. The first is to reduce congestion and the second is to raise always-needed revenues for over-spending governments.

While the latter goal may be achieved (in a highly regressive manner by taxing people who can neither avoid the tax nor afford to pay for it) the former goal is impossible to achieve…