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Coming This Summer: New DC Bus Tax


Dan Barrett
May 18, 2011

Folks traveling these days are faced with higher gas prices, more airport security fees, and static rail schedules, but new bus companies like Bolt and Mega Bus have utilized new technologies and business models to drive down the cost and hassle of getting around. If I wanted to take a mental health day from researching our federal budget (taxing as it is bloated), I could have paid a measly $20 for a round trip to New York City from Washington DC. Aside from the long gone Skybus airline, you can’t get any better than that.

The companies get by with rock bottom prices because they don’t have investments in bus depots, heavy union contracts, or out of touch leadership. They pick you up from a designated location -- a parking lot or street curb -- and get you where you’re going in a reasonable amount of time. My trip to NYC would take four hours in morning traffic.

However, the deals might be coming to an end. The DC government plans to impose a public space rental fee of $80,000 (or more) per year on these companies. This is a city government that already taxes its citizens and businesses similar to the nation’s biggest tax-hogs: Tied with California in the Tax Foundation’s Tax Freedom Day and with Washington State in the Americans for Tax Reform’s Cost of Government Day. In as little as a month, consumers will take another blow to their purchasing power because of government taxing and regulation.

This is likely not the end of the story. The nearby states of Virginia and Maryland have an opportunity to become new stop points for the bus companies. Whether they would impose a similar tax or leave the companies to serve their customers remains to be seen.


 

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