It’ll cost you

Charging for public services sometimes makes sense. Often, though, it is a racket


  • by
  • 08 27, 2015
  • in Leaders

GETTING divorced? Going to the doctor? Flushing a loo? If so, you are increasingly likely to receive a bill from the government. As cash-strapped Western countries try to balance their books without raising unpopular taxes, they are charging higher fees for everyday services. American cities tap their residents for around a quarter more in such charges than they did at the turn of the century. Half the countries in the EU have increased health-care charges since the financial crisis. In Britain, where a severe fiscal squeeze is under way, new fees are popping up in unexpected places, from the criminal courts to municipal pest-control agencies (see ).Pay-as-you-go government has advantages. Charging for services helps allocate resources efficiently, deterring overconsumption, just as parking meters stop people hogging spaces. And far from being uniformly regressive, fees can be fairer than general taxation. Selling water by the litre, as Ireland controversially began to do in January, means frugal users pay less than those whose taps gush. Tuition fees reduce the subsidies paid to students by those who never enjoyed the benefit of university. Some of the biggest consumers of free or subsidised services are the middle classes, who ought to pay.

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