Taxing motorists by the mile: Inevitable: The Swamp
The Swamp
Chicago Tribune
Posted February 26, 2009 11:45 AM
The Swamp

by Mark Silva

Taxing motorists by the miles driven, as opposed to gallons of gas consumed, is the way to go - according to a federal commission's report today.

Trouble is, the White House already has deemed the idea of a Vehicle Mileage Traveled tax "a no go'' -- the words of the White House press secretary the day it was reported that the president's transportation secretary was talking up the VMT tax.

"The White House was somewhat premature'' in its reaction to Transportation Secretary Ray LaHood's creative thing, says Robert Atkinson, chairman of the National Surface Transportation Infrastructure Financing Commission mileage plan.

The nation's reliance on gas taxes is unsustainable and "likely to erode more quickly than previously thought," the commission's report released today says.

Spending per mile traveled has dropped almost 50 percent, adjusted for inflation, since the Highway Trust Fund was created in the late 1950s.

The VMT tax requires an eyebrow-raising Global Positioning Satellite-tracked device in the cars people drive, though in Oregon, where they have road-tested the idea, the state was tracking miles traveled, not the locations of motorists.

"It's absolutely critical that we look at it,'' Atkinson told Bloomberg News in an interview. "The members of Congress that are committed to a robust transportation system are certainly very aware of the risks of that system not having as much money as it needs because of the stated policy of the Obama administration."

The 15-member commission recommends that the nation switch to a VMT tax that rises with inflation and phase out the gas tax by 2020. The panel also says the gas tax should be boosted in the meantime by as much as 10 cents a gallon, or 54 percent. The tax has been 18.4 cents a gallon since 1993 - but the government recently had to pump $8 billion into the highway fund to offset tax shortfalls.

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Comments

I prefer what the UK used to do (and maybe still does). As I understand it, there's a considerable tax levied based on engine size at time of purchase, especially engines over 2.0 liters. Road hogs get taxed, while those trying to conserve resources are not. Road hogs are therefore encouraged to trade-in toward more efficient vehicles, which supports the auto industry. Win-win.


Obama staffer wishes to hike taxes.

Surprise, surprise.

Isn't tax hikes what they always propose--for anything and everything?


I commute to live. I live where I can afford housing on what little I make at what temp jobs I can find. I drive an economy car, not a 4x4, to pay less tax.

It shifts a tax burden to those less able to pay. I might be forced to *not work if this is enacted; get it? Obama wants me to pay a tax, even though I'm underemployed; not live off the system because I'm over-taxed.


Raising the gas tax is too difficult but implementing this bureaucratic nightmare isn't?
But I forget, why reward fuel economy and worry about the future. This panel, at work since 2005 (Bush era) has certainly wasted federal funds!


GPS tracking devices in your car?? Talk about Big Brother in your back seat. Not only that, they will be able to determine anywhere and everywhere you go.


I'm glad my fellow swampers all sniffed this one out except for hope-n-change-my-underwear-once-per-month. This is a pug panel, suggesting pug stupidity, using Pug Lahoodwink to try and implement it. And of course, Obama is standing up for the middle class, economy, and environment by oposing this tax as soon as it was suggested. I'm sure glad that the pugs are looking like the socialist party with tracking everyone's vehicles and such. What a bunch of maroons.

Kenny, I was unaware of the English tax. That seams to be reasonable and easier to implement. Also, many other countries have annual registration fees that make ours look like a pitance. I think instead of making a large one-time tax at the sale, spread it out over the life of the vehicle with the registration fees.


Eventually we will have to do something to replace the gas tax as we move to more electric/alternative vehicles. However, I don't think we are within 5 years of needing such a switchover but we need to start thinking about how to best implement such a plan.


Let me tell you how it will be;
There's one for you, nineteen for me.
'Cause I?m the taxman,
Yeah, I?m the taxman.

Should five per cent appear too small,
Be thankful I don't take it all.
'Cause I?m the taxman,
Yeah, I?m the taxman.

(if you drive a car, car;) - I?ll tax the street;
(if you try to sit, sit;) - I?ll tax your seat;
(if you get too cold, cold;) - I?ll tax the heat;
(if you take a walk, walk;) - I'll tax your feet.

Taxman!

'Cause I?m the taxman,
Yeah, I?m the taxman.

Don't ask me what I want it for, (ah-ah, mister Wilson)
If you don't want to pay some more. (ah-ah, mister heath)
'Cause I?m the taxman,
Yeah, I?m the taxman.

Now my advice for those who die, (taxman)
Declare the pennies on your eyes. (taxman)
'Cause I?m the taxman,
Yeah, I?m the taxman.

And you're working for no one but me.

Taxman!


KB,

Good idea. Then we can rid the roadways of those SUV's like the Nissan Murano which has a 3.5L engine and averages only 20mpg.


Non Xcellentform, this is not a "pug" idea, rather it's somethings liberals love. Let's tax our miles, the end result being fewer miles driven so that should help fight global warming, right?
You want to destroy the economy even more? Institute this plan. People won't drive to stores, won't take weekend trips, won't drive to the restaurant, so the whole economy suffers. If tax revenues are down because folks are driving less and buying less gas, how does taxing their miles solve that problem? Or, are we just going to be taxed twice: on the gas and miles we drive? Oh, and still pay tolls too? Time for the revolution, I think.


Obama staffer wishes to hike taxes.
Surprise, surprise.
Isn't tax hikes what they always propose--for anything and everything?
Posted by: HopeNChange | February 26, 2009 12:27 PM

The KEY Word to all of this CHANGE


BTW, all you stupid Republican politicians understand that we are still trying to pay of Ronnie Rayguns huge deficit spending, right?

Bill Clintoons started to pay it down, but GWB stepped in just in time (think trifecta) and put a stop to it.


"John d & the Hyporcrats": Don't you first have to make a point when engaging someone else in a debate around here? I'm sure you saw the word pug and just started frothing at the mouth. Your posts makes no sense unless you are trying that denial thing out by saying there are liberal pugs and conservative pugs, where as the rest of the world only sees pugs. Why don't you just switch to the Libertarians if you are so ashamed of being a pug?


Bub, KB,
My idea would be;
DMV issues a small required sticker that limits a vehicle to the following highest speeds;

(Combined mileage est)
under 20 mpg: 55 mph max
20-25 mpg; 65 mph max
25+; 65 mph + where legal

My reasoning is that if Americans have the choice of rolling big, stupid and slow, or small, smart and fast, they will pick fast every time.


Heartburn,

Hey thanks a million. I NEVER knew what John and Paul were saying in the background there~ calling out Prime Ministers Edward Heath and Harold Wilson. Those 4 Englishmen were so clever and so perceptive. So on target. Thanx heatburn. U made my day.


VMT taxes may seem odd for many people, but I do think LaHood is onto something there. I'm no Republican, but the idea is something that I think might work in future situations, mainly because of the fact that gas taxes may be obsolete coinciding with the elimination of gas guzzlers.


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