In order to solve traffic problems, governments should tax private car owners heavily and use the money to improve public transportation. What are the advantages and disadvantages of such a solution?

The traffic issues are caused by the incremental number of private vehicles. Some critics claim that, the government should impose taxes on private cars to solve the traffic issues. This essay will discuss benefits and drawbacks on imposing taxes on private cars before reasonable conclusion is reached.

The government could accumulate of lump sum of money from taxes to improve societies. Even though, the government imposes a tax on private cars in terms of Goods and Services Tax (GST), Capital Gain Tax (CGT), Stamp Duty or Green tax, the demand for purchasing vehicles would remain same. As a result, the government could gather huge amount of tax. With those monies, the government could improve society by providing subsidies for manufacturing companies. For example, the government could encourage companies to use natural gases instead of use of fossil gases. Therefore, the environment will be clean by decreasing the amount of pollution from vehicles. While the government could improve societies by collecting taxes from individuals, the burden for individuals would not be wiped out.

The consequences, of the government imposes taxes on personal vehicles, would bringing the potential economic downturn. They would still purchase cars even though individuals would face a huge burden of vehicle taxes. The higher prices for vehicles would be derived from huge taxes; as a result, individuals would seek for more employment. The demand for employment would increase due to higher price cars whereas the supply for employment remains same. Depression in economic growth would derive from higher demand and lower supplies for the employment. As a result, the traffic issues would be remained as a debatable issue.

Even though a potential economic downturn occurs due to the higher taxes on private vehicles, the taxes would directly impact on environment and solve traffic. Therefore, I put more weigh on advantage than disadvantages.