Front and Center

Politics, society, and other random randomness

Uncle Sam Wants to Tax You…By the Mile

In the US there is always the need for infrastructure upgrades and maintenance.  Unfortunately, funds are short these days.  So, the Congressional Budget Office (CBO) has floated an idea for a new tax to raise funds.  What’s the new tax?  Simple.  Drivers would get taxed for every mile they drive:

The report discussed the proposal in great detail, including the development of technology that would allow total vehicle miles traveled (VMT) to be tracked, reported and taxed, as well as the pros and cons of mandating the installation of this technology in all vehicles.

CBO’s report stressed it was making no recommendations but seemed to support a VMT tax as a more accurate way of having drivers pay for the costs of highway maintenance. The report said miles driven is a larger factor in highway repairs than fuel consumption and suggested that having drivers pay for the real costs of highways “would involve imposing a combination of fuel taxes and per-mile charges.”

On the one hand, funds have to be raised somehow, and this may be a viable option. However, it also would penalize folks who got more fuel efficient vehicles (less gas purchased at the pump means less gas tax revenue). Also, for folks like me, who are in sales, we would bear a disproportionate share of the tax bill.

We will see how this one pans out.

Advertisements

2 responses to “Uncle Sam Wants to Tax You…By the Mile

  1. Pingback: It never ends. « Jb's Sanctuary

  2. Chloe March 25, 2011 at 11:05 pm

    I posted about this myself earlier today, and it was a pleasure to read your take on it HalFrontandCenter.

    Cheers, cars2scrap

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: