I expect this issue to gain traction in the coming months. The idea is that instead of paying a per gallon gas tax the tax would be in the form of a mileage tax. There would be a component of the tax tied to vehicle weight. The rationale is that the fuel tax is earmarked for road construction and repair so those consumers that use the road the most should pay more for its use.
Therefore, heavy vehicles that rack up mileage would pay more than economy cars that drive few miles. In other words the Cadillac Escalade driver that travels 15,000 miles per year would pay more than the Honda Accord driver that travels 10,000 miles per year. The actual fuel economy of the vehicle would not directly enter into the equations.
The fuel tax per gallon would be removed and a tax per weight/mile driven would replace it. This means that gas prices would be lowered since the tax would no longer be collected at the pump.
However, the devil is in the details. How do you monitor miles driven? There would either need to be a tamperproof device installed in vehicles to monitor miles driven or else mandatory odometer inspections.
So, in theory I would favor replacing the per gallon fuel tax with a mileage tax, but I'd reserve judgment until I see how it would be administered.
Comments?
Therefore, heavy vehicles that rack up mileage would pay more than economy cars that drive few miles. In other words the Cadillac Escalade driver that travels 15,000 miles per year would pay more than the Honda Accord driver that travels 10,000 miles per year. The actual fuel economy of the vehicle would not directly enter into the equations.
The fuel tax per gallon would be removed and a tax per weight/mile driven would replace it. This means that gas prices would be lowered since the tax would no longer be collected at the pump.
However, the devil is in the details. How do you monitor miles driven? There would either need to be a tamperproof device installed in vehicles to monitor miles driven or else mandatory odometer inspections.
So, in theory I would favor replacing the per gallon fuel tax with a mileage tax, but I'd reserve judgment until I see how it would be administered.
Comments?