CBO: Taxing mileage a 'practical option' for revenue enhancement By Pete Kasperowicz - 03/24/11 04:17 PM ET
The Congressional Budget Office (CBO) this week released a report that said taxing people based on how many miles they drive is a possible option for raising new revenues and that these taxes could be used to offset the costs of highway maintenance at a time when federal funds are short.
The report discussed the proposal in great detail, including the development of technology that would allow total vehicle miles traveled (VMT) to be tracked, reported and taxed, as well as the pros and cons of mandating the installation of this technology in all vehicles.
"In the past, the efficiency costs of implementing a system of VMT charges — particularly the costs of users' time for slowing and queuing at tollbooths — would clearly have outweighed the potential benefits from more efficient use of highway capacity," CBO wrote. "Now, electronic metering and billing are making per-mile charges a practical option."
The report was requested by Senate Budget Committee Chairman Kent Conrad (D-N.D.), who held a hearing on transportation funding in early March. In that hearing, Transportation Secretary Ray LaHood said the Obama administration is hoping to spend $556 billion over the next six years, much of which would go to federal transportation improvement projects.
Conrad said in response that federal funds are tight, and in asking for recommendations on how to raise that money, he noted the possibility of a VMT tax as a way to solve the problem of collecting less in taxes as people move to more fuel-efficient vehicles.
"Do we do gas tax?" Conrad asked. "Do we move to some kind of an assessment that is based on how many miles vehicles go, so that we capture revenue from those who are going to be using the roads who aren't going to be paying any gas tax, or very little, with hybrids and electric cars?"
Conrad argued some recommendation should be made by his committee on these issues when the Senate considers a transportation spending bill later this year.
CBO's report stressed it was making no recommendations but seemed to support a VMT tax as a more accurate way of having drivers pay for the costs of highway maintenance. The report said miles driven is a larger factor in highway repairs than fuel consumption and suggested that having drivers pay for the real costs of highways "would involve imposing a combination of fuel taxes and per-mile charges."
But CBO's assessment of "costs" was broader than just those costs associated with maintaining highway systems.
"Any given driver’s highway use also imposes costs on other users, on nearby nonusers, on the environment, and on the economy in the form of congestion, risk of accidents, noise, emissions of greenhouse gases and pollutants that affect local air quality, and dependence on foreign oil," CBO said.
On how to implement the idea, CBO said it is unclear how much it would cost to "install metering equipment in all of the nation's cars and trucks."
"Having the devices installed as original equipment under a mandate to vehicle manufacturers would be relatively inexpensive but could lead to a long transition; requiring vehicles to be retrofitted with the devices could be faster but much more costly, and the equipment could be more susceptible to tampering than factory-installed equipment might be," CBO said.
The report added that VMT taxes could be tracked and even collected at filling stations. "If VMT taxes were collected at the pump, each time fuel was purchased, information would be sent from a device in the vehicle to a device at the filling station," it said.
CBO also suggested different VMT tax rates might be assessed to different vehicles because heavier vehicles do more road damage, and rates might change depending on whether miles are driven at peak use times or during less congested hours.
CBO did acknowledge that privacy concerns may be a hurdle to implementing a VMT tax because electronic tracking of miles driven might provide too much personal information to the government. However, CBO noted that some have proposed restricting the information that would be transmitted to the government.
On how to implement the idea, CBO said it is unclear how much it would cost to "install metering equipment in all of the nation's cars and trucks."
Quoted Text
Congressional Budget Office (CBO) this week released a report that said taxing people based on how many miles they drive is a possible option for raising new revenues and that these taxes could be used to offset the costs of highway maintenance at a time when federal funds are short
what stupid asses........they dont have to install sh!t.....theres an app for that I'm sure....like GPS/cell phones/Ipods etc.....if they can track your phone they can track the miles you drive.....
We The Living...Ayn Rand
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
I heard about this before......hated the idea then and hate it now. AGAIN....instead of cutting spending, they just keep finding new ways to make us pay MORE taxes! When will this nonsense end?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I heard about this before......hated the idea then and hate it now. AGAIN....instead of cutting spending, they just keep finding new ways to make us pay MORE taxes! When will this nonsense end?
It wont end until the people say enough is enough, they're already bleeding us dry through taxation, next might as well be slavery.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
Our only salvation is a strong conservative leader. And we ain't seen on on them in years and years!!! And accept for Ron Paul, I don't see any future potential leaders either!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Our only salvation is a strong conservative leader. And we ain't seen on on them in years and years!!! And accept for Ron Paul, I don't see any future potential leaders either!!
Yup and like I said it's the people who need to say enough is enough and get someone in like RP. Either that or we will have to stop this insanity because the real crisis would begin.
"In the beginning of a change, the Patriot is a scarce man, brave, hated and scorned. When his cause succeeds, however, the timid join him, for then it costs nothing to be a Patriot."
This administration has 2 years left and that is w-a-y too long! They can do a ton of damage.
Remember folks........CASH IS KING..........so hang on to your cash!!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Right while we spend a million dollars a missile over seas. Let's see over 120 missiles launched....
war ALWAYS guarantees jobs of sorts......build missiles--blow up missiles---build missiles---blow up missiles.......kind of like: grow subsidised food---crap food---grow subsidised food---crap food.......it's the systems in motion that we ride like levers and pulleys the only problem are the 'cogs'......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
This administration has 2 years left and that is w-a-y too long! They can do a ton of damage.
Remember folks........CASH IS KING..........so hang on to your cash!!!
with ATM/Credit cards/checks/direct deposit of SS and pay checks/auto-pay bills/auto pay and collect taxes etc and the digital banking machine...
CASH WILL VERY SOON DISAPPEAR.....BARTERING WILL REIGN SUPREME.....BE PREPARED TO SWEAT....
that's why I still dont get the placement of all these bank building other than them trying to get folks to deposit so they can either fight the feds or get on the fed reserve's team.....hhhhmmmmmm
because it doesn't matter if we are talking cash dollars or buttons.....it's all about the control of the system
it will be quick....and it will probably be a 'terrorism' threat/fear story.......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
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