The Idea That Won’t Die: How Taxing Cars by the Mile is Back on the Agenda Again

Pete Kasperowicz
The Blaze

…CBO imagines collecting the tax by fitting each car with a device that tracks how far the car has gone. That data could be read electronically whenever someone uses a toll or stops at a service station for gas.

While CBO admits there are some privacy issues involved, it suggested that the electronic devices would be used to generate information that is only collected by a private entity, not the government, for the purpose of calculating mileage taxes…

…Many seem to agree that the increased fuel-efficiency of cars has made it harder for the government to raise money via the gas tax. That 18.4 cent-per-gallon gasoline tax has also not been increased for years, not even for inflation.

CBO said if the tax were adjusted for inflation, drivers would see a 30 cent-per-gallon tax today.

Members of Congress have floated several proposals to find more highway money. Several senators are discussing a tax holiday for overseas income that is repatriated into the United States, which could raise billions of dollars.

In the House, GOP leaders favor a plan cut out Saturday mail delivery to find short-term highway money.

Few members have talked openly about imposing a VMT tax. Late last year, Rep. Earl Blumenauer (D-Ore.) proposed a VMT tax, and said it would create a more stable funding base for federal highway projects.



Read the entire article at The Blaze.




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