Friday, July 17, 2015

Taxing Drivers for Every Mile Driven

Here’s a great example of governments getting caught up in the Law of Unintended Consequences. The feds have offered incentives for buyers of electric and hybrid vehicles, and they have mandated (and the market has forced drivers toward) greater fuel efficiency in gasoline vehicles. But the states are dependent upon gasoline taxes for a significant portion of their budgets.

Solution: Tax people by mileage driven, coming soon to Oregon, (a system cleverly named OreGO), with twenty-eight other states considering such programs.

Oregon’s Department of Transportation has been working on it for 15 years as a way to eventually replace the gas tax, which has been flat due to an influx of high mileage vehicles and people driving less.
Right now the program is voluntary and being capped at 5,000 participants, but an ODOT official told Fox News the ultimate goal is to make it mandatory and change the way states pay for roads — forever.
Two of the three OReGO systems track and store a car’s every move.

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