Mileage tax to add to rising gas prices?

March 31, 2011 04:08

[CBO] released a report — commissioned by a Senate Democrat — on whether a “vehicle mileage tax” would be either practical or practicable. A vehicle mileage tax (or VMT) would require people to report on the mileage they drive in their family or business vehicles.

By Andrew Langer at The Daily Caller


The size of the tax would be based on that mileage.

This is not a new idea — Transportation Secretary Ray LaHood and others have proposed this before — but in the past the idea was shot down as too expensive or unworkable. This time, though, the CBO concluded that a VMT would be a “practical option for revenue enhancement” (read: an effective way to tax people).

What makes it efficient is that it effectively transfers the burden of paying for the highest-cost roads (urban roads) to America’s rural residents. While there is merit in having suburbanites pay for urban roads, cities and states have found ways to do this — generally through tolls and gas taxes.

But here we have a tax that will be levied on two classes of drivers: long-distance drivers and those with heavier vehicles, two classes that are increasingly rare in urban areas.


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