D.C. Boosts Taxes on Uber, Lyft by 500 Percent to Pay for Busted Metro System

Well that makes no sense at all. But this is Washington we’re talking about, were things often don’t make sense.

(From Reason)

Washington, D.C., just passed a steep tax hike on ridesharing services to pay for its increasingly unpopular, frequently on-fire Metro system.

On Tuesday the D.C. City Council boosted the city’s tax on trips performed by services like Uber, Lyft, and Via from the current 1 percent tax to a full 6 percent, adding 50 cents to a $10 ride.

D.C. Mayor Muriel Bowser had proposed a more modest 4.75 percent tax on ridesharing trips back in March. City Councilman Jack Evans—who also chairs Metro’s board (which operates independently of the city government)—sold his colleagues on a higher tax by promising that riders wouldn’t even notice it.

“No one will notice that. No passengers will know because they have no idea what they are going to pay anyway,” saidEvans in April. (Evans had previously described the prospect of taxing Uber as “very exciting.”)

Yup, that’s our DC. Tax what works to subsidize what doesn’t work well. (Though to be fair, Metro’s not the BART, or worse the NYC subway.) Pretty smart.