More Miles, Better Mileage Taxing The Tax Man

Think cars aren’t getting more efficient and people aren’t driving farther these days? Well, the tax collector does think so, and if there’s one person we always believe, it’s the tax man.

Anyway, the Federal Highway Administration is estimating that in two years the revenue from state and federal gasoline taxes, which funds the national highway system, will be about $21 billion shy of what’s needed to maintain existing roads — give or take a billion, we guess.

That doesn’t include the money needed to build new roads, either. This shortfall is expected to come even as taxes already grew 10% between 2000 and 2005, and are supposed to grow another 11.6% between now and 2012.

The U.S. Department of Transportation is blaming you. Well, it’s blaming you if you drive more today than you did in 1990, when the average car traveled 11,107 miles a year. That number rose to 12,084 miles in 2005. Quick math puts that at less than a 10% increase, though, compared to the more than 10% growth in taxes collected. The government says it will start lacking funding in 2009.

So, how do we recover? How do you get that favorite stretch of interstate repaved? Higher tolls and new taxes. Some states are looking at taxing miles driven to supplement their portion of the shortfall. Instead of increasing a tax 20 cents per gallon, imagine an additional 1 cent per mile tax, like the one Oregon is trying out. 

Fuel-Efficient Cars Dent States' Road Budgets (Wall Street Journal)

Comments

Hm, the government will do anything for money. They want more efficient cars, but get mad when people don't have to buy as much gas.

[Dan]

How are they determining miles driven? What is the system Oregon is using? Sounds hard to enforce.

[Dave T.]

Dan,
Check out the link on the WSJ story. They're actually equipping a test fleet of cars with sensors. I would think an annual inspection would work better but probably lead to mass odometer tampering.

[LM]

The answer to highway funding woes is additional tolls. With electronic collection it doesnt require cars to stop and it is completely unrelated to gas prices/fuel efficiency.

I love how people want smooth, newly-paved roads but hate taxes (fees). Figures - American's love getting something for nothing. HA.

[Infosaur]

Sorry LM, Americans get NOTHING for free. Uncle Sam personally took more than $3200 from me last year before I even saw it. Now if they'd stop spending that money on methadone clinics, FEMA trailers, private jets for congress and boondoggle hummers? Maybe they MIGHT have some cash for a few potholes?

[George]

What a crock!
Check out your state's CAFR-Comprehensive Annual Financial Report
http://cafrman.com/

Take some trucks, and transport them intact via the rail system.

[Dan]

George-
Bah, that site was debunked long ago.

(http://64.233.167.104/search?q=cache:ZOjEt-f_wJEJ:edweb.emp.state.or.us/comm/NewsFocus/Content/2003/02-24-03.htm+cafrman.com+debunked&hl=en&ct=clnk&cd=1&gl=us)

(sorry, google cache was best I could do)

[LM]

Hey Infosaur...how about the boondoggle war?

Sorry, but you wont win any sympathy for railing against FEMA trailers for people who lost their homes in Katrina or meth clinics (I prefer they be in a clinic than under a bridge).

Maybe we need people who believe in government actually run it instead of those who don't so they mismanage it. Face it, we're going to have a government we may as well have people run it who believe it can do good.