The Hidden Tax of Car Ownership

Owning a car costs a lot. Source Environmental Protection Agency

 
We were recently asked by some friends who are new to the country to loan them a vast sum of money so they could buy a car. They rented a car from other friends and believed the costs were too high. We explained to them that they were getting a pretty good deal compared to owning a car. Again, they balked at the costs of a loan, driver's license, insurance, and paying the ongoing costs to maintain something just to get to work and back. According to research, lower-income households generally pay a larger portion of their income on transportation, and as people move up in income brackets, they spend a smaller portion on transportation. The same site posts the shocking statistic that: "In 2016, in the US, the lowest earning 20% of the population earned an average of $11,933, and spent an average of $3497 (29%) on transportation costs." Welcome to America.

Comparing the U.S. to statistics from the rest of the world on per capita expenditure for transport, the U.S. ranks fourth, just behind three small, rich European nations. The Philippines, where the friends come from, has one of the world's most amazing informal private transportation systems allowing most to get around at a modest cost. A Filipino's per capita expenditure is a quarter of the average American's. Just like the average American has the carbon footprint of 20 Filipinos. What happens to the earth when every Filipino is living like an American? Maybe Americans can learn some lessons from Filipinos on how to live lighter on the earth.

Welcome to the U.S., where what you don't pay in taxes, you will pay in hidden fees in everything from healthcare to car ownership. You go to the doctor, and nobody can tell you what it will cost in addition to being compelled to own a car no matter what. Everything here is filled with hidden fees set to bankrupt anyone of modest income.