Taxing while Driving

I always “love” to see another creative idea for taxation. According to TheHill.com, this time it’s the Congressional Budget Office (CBO) who is recommending the tracking of “Vehicle Miles Traveled” (VMT) and taxing them.

Yeah.

I’m too annoyed to say much else right now.

Yeah.

Since it’s late, and because tomorrow will be a busy day of allergy shots, journalism work, PowerPoint creation, and a Media Ethics paper, I’ll read the CBO’s report later.  Assuming this isn’t an early April Fool’s joke, I’ll write about it more in a later post.

Nah. The April Fool’s joke would be a government agency seriously proposing cuts to taxes and spending.

G’night.

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2 Comments

  1. Actually, there is an upside to this approach so long as it would replace the current gas tax structure at the pump. Currently, 87% of Vehicle Miles Traveled are on local municipal roads. However, local roads only receive 13% of the taxes collected at the pump. Such a system could make it easier to justify sending more money for the roads that are used more frequently. The bigger problem either way is that a huge chunk of the funds go to fund the DOT and mass transit. (For disclosure, I direct the NYS Association of Town Superintendents of Highways.)

    Reply
    • Michael,

      I really appreciate this comment. You provide an interesting perspective on this tax, especially because you provide a “local’ viewpoint. I haven’t done much research on the topic… yet. You’ve given me a starting point.

      I’ve got some initial concerns with tracking and taxing mileage. First, I don’t want to see it as an additional tax, and I think too many politicians might see this as just another source of revenue. I think this corresponds well with your point about there being an upside if it were to replace the current gas tax structure. Second, this would require a method of tracking our vehicle mileage. This is where I need to do my research. Are we talking about an increase in toll roads, (with the necessary infrastructure costs and delays), or are we talking about tracking technology similar to EZPass? Not that I’m a conspiracist, but I get antsy whenever I hear about new ways for the government to track our actions. Finally, are we talking about another government requirement for automobile manufacturers? Perhaps requiring the installation of mileage tracking systems into vehicles? It might not be much, but I’m sure that’s another cost to be added into the price of a new car.

      Those are just a few concerns that I have. I suspect that I will find others.

      Thanks for sharing your perspective. I found it quite informative!

      Reply

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