Monday, June 06, 2022

Dropping the gas tax? How about switching to a mileage tax to pay for roads?

To appease fossil fuel addiction, some states are temporarily dropping gas tax due to rising gas prices. Gas taxes tend to go toward paying for the roads so this could lead to cuts in highway budgets.

This also relates to the question of how to pay for roads if vehicles use no gas, such as electric vehicles. Maybe this could be seen as part of a transitioning toward mileage tax versus a gas tax to pay for roads. In the future, mileage and weight taxes make more sense than fuel taxes.

Given concern about climate change, with it's potential reductions of investment in fossil fuel infrastructure, gasoline may remain expensive. Carbon taxes could serve as the new gas tax.

Some folks might be weary of their vehicle being tracked by GPS to calculate the tax. They might say, "Big Brother satellite in the sky." On the other hand, I hear that car theft is on the rise. Knowing where the vehicle is, at all times, makes it easier to catch the thieves. The growing car theft problem could be significantly reduced.

In the future, even bicycles might pay the mileage fee, but they could get a huge break on weight. It's also harder to rack up lots of miles, on a bicycle, so the fees wouldn't be prohibitive.

Car insurance could take mileage from GPS into account also. Thus eliminating the insurance penalty for car owners who only use the car on rare occasion.

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