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Massachusetts Will Tax Ride-Sharing Companies To Subsidize Taxis (reuters.com)
Massachusetts will tax ride-sharing services -- 20 cents for each ride -- with 25% of the money raised going into a special fund for the taxi industry (according to an article shared by schwit1 ). Reuters reports:
Ride services are not enthusiastic about the fee. "I don't think we should be in the business of subsidizing potential competitors," said Kirill Evdakov, the chief executive of Fasten, a ride service that launched in Boston last year and also operates in Austin, Texas. Some taxi owners wanted the law to go further, perhaps banning the start-up competitors unless they meet the requirements taxis do, such as regular vehicle inspection by the police...
The fee may raise millions of dollars a year because Lyft and Uber alone have a combined 2.5 million rides per month in Massachusetts... The 5-cent fee will be collected through the end of 2021. Then the taxi subsidy will disappear and the 20 cents will be split by localities and the state for five years. The whole fee will go away at the end of 2026.
Republican Governor Charlie Baker signed the law, which specifically bans ride-sharing services from passing those costs on to their drivers or riders. And the article notes that Taiwan has also hit Uber with a $6.4 million tax bill, while Seattle has passed a new law allowing ride-sharing drivers to unionize.
The fee may raise millions of dollars a year because Lyft and Uber alone have a combined 2.5 million rides per month in Massachusetts... The 5-cent fee will be collected through the end of 2021. Then the taxi subsidy will disappear and the 20 cents will be split by localities and the state for five years. The whole fee will go away at the end of 2026.
Republican Governor Charlie Baker signed the law, which specifically bans ride-sharing services from passing those costs on to their drivers or riders. And the article notes that Taiwan has also hit Uber with a $6.4 million tax bill, while Seattle has passed a new law allowing ride-sharing drivers to unionize.
You're not a taxi service but taxis are potential competitors. Are the like of Uber and Lyft starting to drop the veneer that they don't occupy the same service space as taxi companies? Or are they going to continue with the double speak?
This is like taxing car owners to subsidize stage coaches.
> The whole fee will go away at the end of 2026.
If you believe that, I have a bridge to sell you.
Real lawyers write in C++
Uber is simply not engaged in "ride sharing". Ride sharing is when a driver is going to make a journey, and takes one or more people with them, in return for covering their costs on the way. No money is made, and the journey happens regardless of the extra people along for the ride.
Here's the relevant section of the law:
The rider or the driver are not to be charged. So it has to come out of Uber's existing take of each ride. It makes it more expensive for Uber while it doesn't cost the rider any more and the driver still makes just as much.
But ultimately there is no way to prevent Uber from just raising their costs in other areas to offset their costs. It's no different than fining a company for some illegal act...the cost is always ultimately passed on to the customer. Or a police department settling a lawsuit...it's not the police that pay it, it's the tax payers. The one that actually pays money into the system is always the one that foots the increased costs.
Welcome to socialism.
What's bullshit is a company being able to come in and cut all corners when those corners were put there because it's what makes a service equally available for everyone. Taxi services are part of the overall transportation plan for the city. Uber doesn't want to be part of the plan, they just want to make money. That's why there needs to be an equalization.
Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
It's bullshit. Of course they can't prevent it. They can prohibit passing on the tax as an enumerated line item, and maybe make that stick,but there's no way in hell they can stop uber from just raising its rates by ... gee ... just HAPPENS to be the same amount as the tax.
They do this with gas stations. Gas stations are prohibited from enumerating on their signage the taxes which the corrupt statist pigs are saddling you with.
Sure. Any transport method that is used instead of another is competition. Walking, bicycles, private cars, motorcycles, skateboards, Segways, busses, subways, jitneys, hansoms, taxis, limos, Uber... all competitors that reduce opportunity for the others.
Anyway, the story is that Uber's earnings will be garnished to subsidize taxis. I wonder, would people approve if their bicycles and cars and so on were taxed specifically to subsidize taxis and/or other transportation methods?
It's fascinating to see the "this business has a right to exist, workable business model or not" attitude arise in a new space, and to watch the politicians be bought and sold accordingly.
I've fallen off your lawn, and I can't get up.
And all the laws that were designed to prevent banking meltdowns didn't stop the last meltdown
This is specifically not accurate.
The Glass-Steagall Act prevented major banking meltdowns since it was passed in the aftermath of the Great Depression. We're talking a 50-60 year track record of success.
The affiliation provisions were struck in 1999, and within a decade there was a major banking crisis. The seeds of that destruction were sown almost immediately after the law was changed. Because, surprise, banks are still run by short-sighted, overly "clever" assholes who will do anything to turn a quick buck.
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According to the latest ruleset, this post should be modded as Vorpal Flamebait +5.