E-Pass, TxTAG (TaxTag), electronic toll, whatever you want to call it — we all know it's a scam. Right?
Well, a new report from MIT, written by Economist Amy Finkelstein called, "E-ZTax: Tax Salience and Tax Rates" (http://econ-www.mit.edu/files/2098) tells exactly how our government makes the toll tax con work:
"...evidence from two separate surveys that individuals are substantially less aware of tolls that they pay electronically than those that they pay with cash."A new Boston Globe article about the report boils it down further:
"hidden taxes go up more than visible taxes."And, the real heart of the con:
"Once 60 percent of drivers have bought a transponder, tolls rise 20 to 40 percent more than they would have otherwise."