Taxing cars by the mile? Energy independence won’t be easy
Infrastructure costs demand the VMT be explored.
If energy independence isn’t cheap, it just won’t happen
In recent years, US gasoline consumption has declined. Cars are becoming more fuel efficient. Hybrid cars and plug-in vehicles are beginning to penetrate the market, and higher gas prices – as well as a tough economy – have forced many to rethink their gasoline consumption. Unfortunately, all of this has led to a decline in gas tax revenues and reduced infrastructure spending.
Yet, these trends are only just emerging and are destined to pick up pace. Ultimately, the gas tax is becoming an obsolete tool for deriving infrastructure revenues, but most Americans just don’t appear ready for something like a Vehicle Miles Traveled Tax.
This morning The Hill posted Obama administration floats draft plan to tax cars by the mile which barely even qualifies as a draft plan. For now, it is simply a loose idea to be studied. Nevertheless, the facts demonstrate that such ideas must be studied.
Sadly, however, the comments on the Hill regarding the VMT tax demonstrate that many Americans just aren’t ready to handle the truth. Unfortunately, we the people just don’t trust the government.
I have my doubts about government competence as well, especially when it comes to Congressional spending, so I can’t completely deny the rational behind this angst. Nevertheless, the facts demonstrate that change is in order.
The government is collecting less in gas tax revenues and as we spend billions incentivizing next generation technologies like electric vehicles, we have to be mindful that these electric vehicles aren’t contributing anything towards infrastructure costs, despite the fact that massive infrastructure upgrades are required for such vehicles.
Yes, change is hard. Yes, trusting the government is hard. But we really don’t have much choice. We can embrace change and work together to make change work for us, or change will work against us.
Well, in a perfect world, i think the VMT tax would replace gas taxes, which are now coming up short. Additionally, as the US becomes more fuel efficient, even less gas taxes will be collected. So, one way or another some kind of change is coming. Likewise, I think the VMT tax could also be tied to vehicle size, tax bracketology, etc. It doesn’t have to be more punitive than the gas tax.
If you want to pass a freedom-destroying bill that will also cause a perpetual Great Depression, just start charging citizens by the mile. You’d be punishing working class people who often have long commutes these days. You’d kill off all the beach resorts. Food prices would escalate even higher since the cost per mile would be passed on to food prices. The price of shipping *anything* would go through the roof. And what will the IRS do to people who can’t pay the mileage tax at the end of the year? Take their cars? Take their homes? Put them in jail?
I like the idea someone had of taxing the vehicle weight. A sliding scale, based on how much tonnage your vehicle is going to impact the roads.
Taxing by the mile won’t an issue unless the alternative to gasloine is not a fuel. If the alternative “is” a fuel,we’ll simply tax the new fuel.
I like Larry’s idea of a precent tax though. Higher gas prices due to shortages will cause a reduction in usage, but increases in the amount of tax per gallon will help to offset this. Plus, the percent tax automatically adjusts for inflation……
I don’t think they have a prayer of doing by the mile because 1. it’s only going to work if done nationally and 2. – the average person is NOT ABOUT to let the govt put a device in their car and then query that device – ain’t going to happen.
The BEST chance to INCREASE the gas tax is to INDEX it to a percent of cost rather than a fixed tax per gallon.
Indexing would allow the tax to automatically adjust to inflation and it would automatically collect more when gas prices go up.
They can’t pass (much less write) a gas tax which would encourage fuel economy. How could they ever do it by the mile. Besides, they’d probably need to either do it at the state level or change registrations to be federally controlled to track it.