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Transportation chief eyes taxing miles driven - White House- msnbc.com

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Transportation chief eyes taxing miles driven - White House- msnbc.com
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Transportation Secretary Ray LaHood says he wants to consider taxing motorists based on how many miles they drive rather than how much gasoline they burn — an idea that has angered drivers in some states where it has been proposed.

Gasoline taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving, LaHood said in an interview with The Associated Press.

"We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled," the former Illinois Republican lawmaker said.

The program that funds the federal share of highway projects is part of a surface transportation law that expires Sept. 30. Last fall, Congress made an emergency infusion of $8 billion to make up for a shortfall between gas tax revenues and the amount of money promised to states for their projects. The gap between money raised by the gas tax and the cost of maintaining the nation's highway system and expanding it to accommodate population growth is forecast to continue to widen.

Among the reasons for the gap is a switch to more fuel-efficient cars and a decrease in driving that many transportation experts believe is related to the economic downturn. Electric cars and alternative-fuel vehicles that don't use gasoline are expected to start penetrating the market in greater numbers.

Transportation Secretary Ray LaHood says he wants to consider taxing motorists based on how many miles they drive rather than how much gasoline they burn — an idea that has angered drivers in some states where it has been proposed.

Gasoline taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving, LaHood said in an interview with The Associated Press.

"We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled," the former Illinois Republican lawmaker said.

The program that funds the federal share of highway projects is part of a surface transportation law that expires Sept. 30. Last fall, Congress made an emergency infusion of $8 billion to make up for a shortfall between gas tax revenues and the amount of money promised to states for their projects. The gap between money raised by the gas tax and the cost of maintaining the nation's highway system and expanding it to accommodate population growth is forecast to continue to widen.

Among the reasons for the gap is a switch to more fuel-efficient cars and a decrease in driving that many transportation experts believe is related to the economic downturn. Electric cars and alternative-fuel vehicles that don't use gasoline are expected to start penetrating the market in greater numbers.

Original URL
http://www.msnbc.msn.com/id/29298315/

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    • JDP JDP
      9 months ago


      Here's the problem with a "simple" miles-traveled tax ... other than the obvious privacy ones of GPS and live wireless feeds to determine that, not to mention the increased possibly of technological snafus that adding tax cents to gallons pumped does NOT have! It does not adequately take into account the cost of maintenance or construction based on the type of use for various vehicles. Specifically, a hybrid or electric car - so far often very "light and easy" on highway infrastructure - would be charged the same mileage tax as a multi-ton, multi-axle tractor trailer.

      Now, one might think that could be "made up" by "road use" taxes applied to the larger vehicles. Unfortunately, studies over the years have indicated that those road-use taxes only cover a fourth or less of the damage done to roads by heavier loads and larger vehicles. Essentially, without reform there, the much heavier consumption of fuel by those heavier, larger vehicles would no longer even marginally make up for the maintenance costs that type of transport imposes on highway infrastructure. Hence, such a mileage tax would just represent a further and more hidden subsidy to some (few?) by much more of "we the people"!

      Some will point out that the highway system already subsidizes trucking and claim that "we all benefit from the flow of goods and commerce". This may be true in some cases - especially for those whose jobs and community are involved in such transportation enterprises, along with others who would not have access to certain goods without long-haul trucking. What is in question is the extent to which any such benefits are spread more or less "evenly" and the extent to which "the many" may be (unfairly!?) subsidizing the few. AND, how and whether using a mileage tax would change that - for better or for worse.
      Geotagging, President Barack Obama, Accountability, President Barack Obama, The Radical Twine, Politics, Unintended Consequences/Unexpected Results, Activism, law & politics, Public Transport, Public Policy, Technology Law, techMix, Location Awareness, *Changing America?, The Skeptic, Energy, Environment, Twine News
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