From
link here
A year ago, the Oregon Department of Transportation announced it had demonstrated that a new way to pay for roads via a mileage tax and satellite technology could work.
Now Gov. Ted Kulongoski says he'd like the legislature to take the next step.
As part of a transportation-related bill he has filed for the 2009 legislative session, the governor says he plans to recommend "a path to transition away from the gas tax as the central funding source for transportation."
Let's see. There are two alternatives here for increasing revenue in the face of more fuel efficient vehicles: 1. raise the gas tax. 2. introduce a complicated vehicle tracking technology to have a mileage tax. Disadvantages of the mileage tax:
**encourages gas guzzling vehicles - check
**raises serious privacy concerns - check
**probably won't work that well - check
**reduces the user fee on heavy vehicles that impose more wear and tear on the highway - check
What are the advantages exactly?
Update: you can find a bit more information here. One possible benefit of the new system is it could be used to implement congestion charges - mileage charges that depend on traffic or time of day. However, that doesn't seem to be the plan.
We already collect at the gas pump. Collecting at the gas pump is a "usage" tax, so it makes no sense to develop a "new" system. This would be a lot cheaper and simpler that creating a whole new bureaucracy.
I understand that Obama will be proposing a tax incentive to promote the creation of more fuel efficient or alternative energy powered cars. I have not done any research on this an a quick look at the NY Times did not disclose any press release about this.
My comment, if we are to encourage the creation of energy saving cars, we need to raise the gas tax.
1, We are currently in a financial mess so we can't and shouldn't subsidize the creation of energy efficient cars. I have come to the conclusion that all subsidy programs, be it affordable housing or college tuition assistance do not work. Cheap money means inflation.
2. Raising the gas tax is a free market solution, if gas costs enough then we will see people do the research to create these energy efficient cars.
3. The money obtained through an increase gas tax can be used to keep the road system up, reduce our debt, or other favored pork barrel project.
Disadvantages of the mileage tax:
**encourages gas guzzling vehicles - check
**raises serious privacy concerns - check
**probably won't work that well - check
**reduces the user fee on heavy vehicles that impose more wear and tear on the highway - check
What are the advantages exactly?
The advantages are obvious. Joe Consumer is screwed and wealth or other benefits transferred from the poor and middle-class to the following enormously important constituencies:
** The major oil companies, the Saudi royal family, the Big Three automakers, et. al. - check
** The FBI, CIA, and other TLAs that want to know your every move - check
** Teamsters (and mobsters), construction companies, and others - check
