Income taxes for drivers likely do not benefit the municipalities where the cars are driving. e.g. The drivers would be consuming space and wear and tear in NYC

Income taxes for drivers likely do not benefit the municipalities where the cars are driving. e.g. The drivers would be consuming space and wear and tear in NYC, but living in Jersey. NYC roads and services necessary to support increased congestion get burdened, but no tax dollars help support them. A regressive policy has nothing to do with the goal of the medallions. They cost what market forces will support. The goal of high-end watches is to keep poor people from knowing what time it is. The medallions aren't for infrastructure. I'd argue the medallions are supported by both the city and existing cabbies because of congestion and quality management issues. It's a way to ensure minimal levels of service and to punish bad (well, abhorrent) service. The tax on fares is for infrastructure and administration. In NYC, $.50/trip is imposed. What's Uber paying? I guess Uber couldn't know when it was dealing with a NYC fare subject to the tax... Oh, wait they couldn't offer that since it would imply they were a taxi service subject to other regs... So, they have to flaunt all the laws and put themselves in a legal bind that isn't all "just obvious barriers to entry."