Thursday, February 17th, 2005

Getting Taxed by the Mile

Have you heard about ideas and proposals to tax drivers for every mile that they drive? The notion behind it is since cars are generally getting more fuel efficient, people are generally filling up their gas tanks less often. As a result, states are beginning to see their tax revenue from gas taxes decline. Therefore, in order to make up for this, states are thinking about adding a tax to each car based on how many miles it’s drive:

[Researchers] at Oregon State University equipped a test car with a global positioning device to keep track of its mileage. Eventually, every car would need one. . . The new tax would be charged each time you fill up. A computer inside the gas pump would communicate with your car’s odometer to calculate how much you owe. The system could also track how often you drive during rush hour and charge higher fees to discourage peak use. . . Privacy advocates say it’s more like big brother riding on your bumper, not to mention a disincentive to buy fuel-efficient cars.

I have to admit it’s an interesting idea. I can imagine that it might discourage long distance suburb-to-city commutes and may encourage more public transportation or carpooling. At the same time, it’s true that for many people, long distances commutes are less of a lifestyle choice but more of a necessity due to job circumstances and that a tax on miles rather than fuel may remove incentives to drive a fuel efficient car.

I guess we’ll just have to stay tuned.


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