Comments on Gregable.: Mileage Tax

Posted this on FriendFeed, but not sure you caught...

2009-07-14T09:52:34.368-07:00

Posted this on FriendFeed, but not sure you caught it.

I wouldn't call Oregon's study successful. Recruiting volunteers is way different than implementing it in the real world. All it shows is that in an unmanipulated environment (i.e., in cars where the GPS device was not tampered with) that the calculation of gas prices based on reported miles traveled is possible. Also, from my perspective, rolling out something like this in Holland is much easier. Their population is only 16 million whereas the U.S. population is around 300 million. In terms of transition to the new system it would be way easier. And given that, its still going to take them about 7 years (projected 2016) in an ideal situation. I am not saying the idea should be abandoned though.

I'd like to make a suggestion/tweak to the idea and propose something different. First the suggestion: like the oregon study, use a sample of people to determine the tax rate for people in a particular area. Most people pay with a credit card and when you pay, you have to enter your corresponding zip code for the card holder. Just match that back up to the sample drivers in your zip. New idea: skip the GPS all together and use a RFID chip in drivers licenses. Each time you buy gas you have to swipe it. You can be charged based on the frequency of fillups and the amount you purchase. This way I can't spread my driving out over multiple cars to keep my costs down. The driver is taxed, not the car. Something like this can be rolled out relatively quick, I imagine.

I agree completely that gas taxes are simpler, whi...

2009-07-13T10:12:56.836-07:00

I agree completely that gas taxes are simpler, which is the only reason they exist and a mileage tax doesn't.

However a gas tax has problems owing to its simplicity. I attempted to raise some of these points in the post.

Tolls have a high overhead and are difficult to enforce in areas with many entrances and exits. This is why they are used on long stretches of highway or bridges. Within most cities they are impractical. Not all large cities are islands.

A mileage tax at its simplest doesn't involve ...

2009-07-12T01:23:46.875-07:00

A mileage tax at its simplest doesn't involve a gps at all. They would just check your odometer when you renew your registration and charge you for the difference. Variable pricing based on location seems impractical. You'd have to update a $100 device in everyone's car every time the law changed unless it phones home.

Gas taxes are simpler on every front. If you need policies to reduce urban traffic and a gas tax isn't enough, a use-tax for residents of the city and a toll on major highways for those entering should be sufficient.