Kuwoobie wrote:
Oh right, I forgot paying taxes on things completely offsets the cheapness and convenience that which it goes to pay for. Of course. How stupid of me. Because if I were to travel to Europe right now, it would be ever so painful to buy a train ticket there because golly gee just think of all those poor motorists who had to pay taxes on cars and gasoline to make this ticket so cheap.
If we're looking at it from an infrastructure implementation point of view, then yes, the costs that are paid via taxes do completely offset the reduced ticket price of the result. Failing to take that part of the cost into account is misleading at best and an outright lie at worst.
Imagine if the government decided to do the same thing with other products or services? Let's pretend there are two chains of burger joints, but for some reason the government has decided to apply a 50% tax on chain 1's burgers and use the revenue gained to subsidize the cost of burgers at chain 2. If we assumed that both burgers were identical and would normally cost $5, the consumer would walk into chain 1 and see that burgers cost $7.50, and walk into chain 2 and see that burgers cost $2.50. He might also make the mistake of thinking that the burgers at chain 2 were less expensive.
The problem is that both burgers actually cost the exact same amount. They require the same ingredients for the same cost. The fact that the consumer is being tricked into thinking that one costs more than the other doesn't mean that they actually cost different amounts. For the same reason, even though in the case of cars versus trains the products themselves are different, the fact that we massively subsidize one of them by imposing taxes on the other means that the consumer is being deceived about the actual costs involved. We can argue about how much of a deception it is, but it's still absolutely wrong to use that cost difference to argue that one is a better deal than the other, in exactly the same way it would be wrong to say that burger chain 2's burgers were better because they are less expensive.
I'll also point out that usually when things are subsidized to that degree it's because they are *not* as good a value by themselves. If they were, people would choose to buy them freely without the need to subsidize them. And even if they don't start out as a worse value, they often become a worse value because the industry that produces the subsided product has less incentive to improve their product. They don't have to keep costs relative to quality in check because they don't have to entice customers. The government does it for them by adjusting the price to a rate that customers will be willing to pay regardless of the actual costs. This can only make the value relative to cost worse over time.