Tom Troy of the Toledo Blade has an interesting article concerning Toledo's motor vehicle accident response fee in today's paper.
The logic behind these types of fees are that insurance companies will simply pay the fees, so it's being touted as "easy money". The Toledo Police Department is also looking at instituting similar fees for their services, this idea has not yet been voted on by Toledo City Council.
Just like there is no real "free lunch" there is no "free" or "easy money". It has to come from somewhere and if even if Insurance companies and private citizens were being billed fairly (many claim they are not), the money would still come from the pool of insurance dollars and eventually rates will have to increase to cover these additional costs. Or in the case of private citizens, it would come from their income. I don't see any difference in this type of behavior than ambulance chasers, they sue because they know most times they can get a settlement and the insurance companies will pay for it or medical professionals or facilities that pad their bills to get more money from the insurance companies.
In the end the consumer always pays for this which means it is the consumer that has less spendable income. Less spendable income means less money that is spent on consumer products which realistically means less money is spent locally.
If you want more information on how Ohio Insurance companies view this after reading the Toledo Blade article, I'd recommend visiting here.
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3 comments:
If we are to pay by incident, then the 3/4% income tax must be revoked.
The City of Toledo seems to have forgotten the key ingredient being "Accident." It is very cynical on their part when the City leadership simplistically believes that the "Insurance" company will pay. Obviously, like other things they come up with, they don't understand where this money comes from. It always...always ultimately comes from the people.
If they want to charge more for services. They might consider increasing the fines and levies on people who are habitual law breakers. That is where the real cost is.
On the face of it, these charges look to be bogus.
Especially in light of:
The 1-3/4% payroll tax.
The perpetual additional "temporary" 3/4% payroll tax (primarily for Emergency Services).
And now, a third tax, again for the very same services.
Seems to me that someone is budgeting tax monies for non-mandated services, while slighting the essentials. . .
Maybe it's time to throw all the budgets in the trash, reread the charter and re-budget, starting with the essentials.
What about those non-essentials?
Don't do them. . .
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