--- On Thu, 8/28/08, Dennis Claxton <ddclaxton at earthlink.net> wrote:
> Yeah. That's the reimbursement rate for business
> miles, i.e. if you
> use your own car for business tasks (but not including
> driving to and
> from work) that's how much your employer pays you.
>
[WS:] Right. I would like to add that from a household budget point of view, operating expenditures i.e. immediat eout of pocket costs of everyday life activities count differently than "capital expenditures" i.e. purchasing a car or a major appliance. For one thing, households cannot depreciate capital expenses as businesses can - so once such items are purchased by households, the money is already gone and everything else is in addition to that cost. So with that in mind, current operating expenses is all that matters from a household's perspective (especially low income household), and operating costs of a car (about 10 cents per mile for my 35mph on highway 1995 Saturn) is far below the cost of commute (which is about 26 cents per mile plus twice as long as driving because of waiting time in my case).
Another point directed at Jordan re. his cost recovery through tolls issue. There are actually two issues here - one is the funding mechanism, the other once is regulation of access to avoid congestion. We've been on that road before, so let me summarize what I already argued. Tolls as a funding mechanism are ineffecient (I agree with you) - however there are alternatives to general taxation mechanisms - such as gasoline tax or registration fees. Gasoline tax collection is as efficient as general tax collection, but has an advantage of not shifting the cost of driving on those who do not drive (mainly the low income folk.) So funding of roads through tolls - bad, funding of roads through gasoline tax and registration fees - good.
As far as access regulation is concerned, the main poin here is to avoid congestion and thus making driving more efficient. Congestion-sensitive tolls are can accomplish that goal, and if the tolls collected pay for the the toll booths themselves, that is already very efficient becaue the value (congestion reduction) is added to without any additional cost to the taxpayers. That cost is borne exclusively by drivers - but that i sno different than consumer paing a premium for higher quality merchandise. It is like buying any other appliance - you either buy cheap crap or pay premium for better quality, more efficient models and you make that choice what is best for you.
Finally, the issue of transportation and class/race. Jordan, are you trying to tell me that tranporation in the US is not seggregated i.e. middle/upper middle class whites driving and avaiding transit as much as possible, and transit being used predominantly by working class and ethnic minorities? May I ask which planet did you come from?
To add to Dennis' comment on increased ethnic diversity of suburbia - it is quite visible here in the DC/Baltimore area. That makes me think that the main instrument of apartheid in the US is not housing anymore, but transportation.
Wojtek