The Heartland Institute discussed a Utah plan that would give employees (but not seemingly their employers) an incentive to telecommute. The rationale is that they need a way to financially compensate for the extra traffic and congestion in Salt Lake City during peak traffic hours. And if you’re just a visitor who wanders in by accident, don’t worry… they plan to send you a bill in the mail based on your license tag. (Note to travellers… don’t get lost in Salt Lake City!)
Vehicle miles traveled in rush hour in the Salt Lake City area have been growing faster than population, imposing a huge burden on the transportation infrastructure.
Congestion pricing is a form of variable tolling in which the toll increases as congestion increases. For example, a driver would pay more to drive during peak traffic hours but little or nothing to drive during off-peak hours.
Congestion pricing gives commuters a financial incentive to car pool, telecommute, travel earlier or later, live closer to work, or embrace a combination of options. Other taxes such as sales taxes do not provide such incentives.
In most areas with congestion pricing, it is implemented by having drivers mount transponders on the dashboard of their cars. The transponders communicate with the highway’s communication system.
When drivers enter a zone where congestion pricing is in force, their credit cards are billed. Drivers without transponders are identified using license plate numbers and billed.
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