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IPFS News Link • Transportation

Uber and Lyft Slapped with Taxi Tax in Massachusetts

• https://fee.org, Brittany Hunter

Forced to Fund Competitors

In a completely unprecedented move, Massachusetts will become the first state in the country to levy a five cent-per-ride tax on ridesharing platforms, like Lyft and Uber. Though this tax alone would be enough to anger free-market advocates, the new regulation doesn't just stop at the nickel fee.

The money that is collected from this new tax will go towards subsidizing the traditional taxi companies that operate within Massachusetts. As can be expected, ride services companies are not pleased by this new regulation that essentially forces them to help fund their competition.

Kirill Evdakov, Chief Executive of the Boston-based ridesharing service Fasten, commented on this matter, saying, "I don't think we should be in the business of subsidizing potential competitors." Kirill is absolutely right: forcing ridesharing services to subsidize the taxi industry, which has been trying to regulate businesses like Fasten into nonexistence, is not only unheard of, but completely ridiculous.


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