Society gains from the mobility cars bring - greater recruitment pools, easier service provision etc etc.
Yet society loses on factors like:
- road congestion
- lower quality of health
- higher accident rates
- loss of social cohesion
- reduction of public transport
- loss of independence for those who can't drive
- higher costs
- lower air quality
As I've previously highlighted the government could provide all public transport for free for the cost of £1,000 per tax payer (current government cost per tax payer £32,000). This compares with the average cost of car ownership of over £3,600 per year.
Given that the number of cars is comparable than the number of tax payers (so the same £1,000 would actually mean slightly less money to spend on public transport, but in my calculation I'd over counted and there's already some subsidy to public transport so it's not an extra £1,000 in taxes) it's not unreasonable to do the following comparison.
If we assume the cost to provide free public transport per car is £1,000, how does that compare to the costs of car ownership?
Even at just over half that average cost of car ownership (£2,000) the government could spend twice as much on public transport as it currently would cost and it would only be quite a limited number of people who would find it cheaper to run their own car than pay taxes to find public transport (even though very few directly pay taxes of £32,000).
However to earn as a take home salary an extra £2,000 to pay for a car means earning about £2,800 more for a basic rate tax payer as:
£15,000 is a take home salary of £14,320
£17,800 is a take home salary of £16,335
Or
£15,000 (with 3% pension contribution) is £14,110
£17,880 (with 3% pension contribution) is £16,114
That's also not assuming things like student loans, or other deductions.
Also a car meaning that you can get a better job only works if you have enough money to buy a car in advance of having a job. (That may mean having enough money to qualify for a loan). Which is fine all the time you have that better job, however as soon as you don't then it's a burden.
There's also the possibility that it stifles business development, in that someone considering starting their own business needs to personally make more money, whilst if public transport was free (as long as society as a whole was making enough) then individuals would be more able to take the risks to start a business.
It's the same argument as to why we should have the NHS, as if healthcare was linked to employment, then an individual is less likely to set up a business as they would have to self fund their health insurance, adding to their personal costs they need to have.