Monday, July 01, 2013

Mileage Taxes

The problem with gas taxes is that, as vehicles become more fuel efficient, you get the same road damage but less revenue.  The problem with congestion taxes is that they're hard to enforce.  Why not combine the two and create a mileage tax?  Every time the mileage is reported to the state, a tax would be levied on the number of miles driving since the last time.  Whenever a car is sold, wrecked, transferred, or moved out of state, the mileage would be recorded and tax levied.  It's not as precise as either the gas tax (at reducing oil consumption) or the congestion tax (at reducing driving in particular areas), but it would both reduce oil consumption and reduce driving in general.  It does both things not particularly well, but it makes enforcement easy and unintrusive (particularly since this information is already collected).  And in terms of raising revenue, switching up the tax code now and again is a proven strategy.


Blogger Yoel Natan said...

The gas and mileage tax is just another means of shunting taxation down to the plebs, since white collar workers and professionals, and well off, generally don't drive as much as the plebs, who commute and drive for their job.

Better yet, to be the most fair, just up income taxes. We have this big economic system, which includes roads and other infrastructure, and educational institutions. The level of a person's income indicates fairly how much he or she benefits from this system. Those who benefit the most ought to pay the most even if they don't drive personally, since if there were no roads, even an investment banker with no car, and who commutes by rail, would hardly make any money at all.

10:51 PM  
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