The government can fund infrastructure without increasing community debt with a user pays consumption tax on existing infrastructure that is fair to those who pay the tax and to those who don’t.

A government can fund the construction of public transport infrastructure to relieve the pressure on roads by applying a tax to the use of roads.  The tax would be applied to each car using a road.  The amount of tax would be calculated according to the frequency of use, the time of day, the type of vehicle, and the road being travelled.  The tax paid by road users would be given as a Reward to people who used the same roads outside peak hours or used public transport.  Rewards must be used to purchase loans from the government to build public transport infrastructure that reduces the demand on the roads.  The loans would have a high fixed interest where the loan amount outstanding is adjusted for inflation. Repayments of loans reduce the capital value of the loan and interest on loans does not attract interest.  Interest will be taxed and hence the government can afford to pay a high interest to make the investment attractive to taxpayers.  The money for the redemption of loans will come from general tax revenue. A limit on redemptions in any one year could be something like the amount of road tax reinvested. Loans can always be sold to other parties at any time.

A Youtube video is at

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