Wednesday, July 16, 2008

It never gets any easier

Port Container Fee Passes Calif. Assembly:

From Mercury News

Basically, it is a $60 a container fee that will generate $400 million, with the goal being to spend that $400 million to reduce air pollution and traffic congestion.

It passed the assembly, and the Governor vetoed a similar bill in 2006.

Environmental economics is based upon the Coase theorem, where the winners will subsidize the losers.

The questions I have are:
1. Who will pay this container fee?
2. Will these costs be passed onto consumers
3. Will the money actually be spent to improve the infrastructure as promised?

This seems like one more problem added to the heap on conflicts that is erupting at the port. I agree with Assemblyman Rick Keene, we are taxing the economic engine of the state.

How naive we are to think that this business will not go elsewhere.

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