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Forget The Gas Tax – A Driving Tax May Be Next


Washington lawmakers are kicking around a new idea to help raise funds to fix our highways and infrastructure: a national driving tax charging motorists by the mile.

A driving tax could either replace the current 18.4 cent a gallon federal gas tax or, possibly, add to it.

Because greater fuel economy is letting motorists drive more miles using less gas, the current gas tax that funds the federal government’s efforts to build and maintain highways isn’t generating enough money.

A driving tax, officially known as a “vehicle miles traveled” tax, could close that gap.

While many see a driving tax as more efficient than the gas tax, there are privacy concerns over how driving information would be collected. Plus, lawmakers opposed to the idea say it places a heavier burden on motorists from rural states.

Although there’s currently no bill proposing such a tax, lawmakers are looking into it.

Earlier this year, North Dakota Democrat and Senate Budget Committee Chairman Kent Conrad asked the Congressional Budget Office to study the idea. In March CBO issued a report that said such a tax was feasible and had many advantages over a gas tax.

“Because highway costs are more directly determined by miles driven than by fuel used, appropriately designed [mileage] taxes can do more to improve the efficiency of road use than fuel taxes can,” the report said.

The CBO report came on the heels of two congressional commissions that recommended implementing such a tax, said Orski.

Last week, the publication The Hill reported that draft transportation legislation from the Obama administration included the driving tax, although administration officials told the paper that it was just an idea and was not supported by the president.

The White House did not respond to a request for comment by CNNMoney.
The state of Oregon is currently conducting a pilot program to evaluate the idea.

Still, with motorists already paying near record gas prices, the driving tax could be a tough sell.

READ MORE: CNN MONEY



8 Responses

  1. We already pay a driving tax at the state and local level on many bridges, tunnels and highways, only instead of a tax, they call it a toll. Are they adding toll booths to the federal interstate system?

  2. If the government would take of the fraud in benefits then they wouldnt have to squeeze more tax out of us hard working midle class folks. I am wondering if any ones lese pays for food.It seems like e/o is on food stamps etc. HMM i wonder if it is all legit, To those who need it may hashem help youwith parnassa beharchava, scammers- Stop stealing from us hardworking people.its gezeila

  3. this govt is rediculous!! first they encourage people to buy more fuel efficient cars, and now they are thinking about taxing us for driving????? thats insane!!
    by the way apushatayid, many many people hardly ever use the dridges and tunnels, and in many places highways dont have tolls.
    daniel, i totally agree with you. as it happens though, i did hear a two second blurb yesterday on the news where the reporter actaully said that people are paying less for food to cover gas. i think they said 1 in 7 or 8 is on food stamps!! as for myself, i have definitely cut back on my food shopping, because my gas is so expensive…..

  4. Nushim & gents, this is another clear reason why liberalism, socialism, democrat partyism, and just about any other “ism” is bad.

    Keep democrats & RINOs OUT of any political office!!

  5. “many many people hardly ever use the dridges and tunnels,”

    I guess that is a good thing, otherwise my delays would be 45 instead of 25 minutes 🙂

  6. I already pay a driving tax by buying gas that is taxed.I can’t drive my current car without gas, so the fact that I am using gas is a tax in itself. There is a way for a car to run on ONLY H2O but, the gov’t. is suppressing that technology because they want the revenue from the gas tax. First they make us dependent on gas then they tax us.

  7. Re # 2 (Daniel):

    Americans today expect essential services to be maintained, while at the same time too many of them have been propagandized into thinking it a moral outrage to raise tax revenues to pay for them

    Comments such as Daniel’s “[i]f the government would take of the fraud in benefits then they wouldnt have to squeeze more tax out of us hard working midle class folks..” are nothing more than unsupported and sadly erroneous assertions. Halevi

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