The E-ZTax Scam

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."