Some states want to tax you per mile you drive
Several state and local governments want to swap a gas tax for a pay-per-mile tax -- using a little black box to track your car's movements.
This post comes from Brandon Ballenger at partner site Money Talks News.
That's the proposal some states and cities want to offer consumers, the Los Angeles Times says. The box would track every mile driven and charge a tax based on the total.
Critics argue the box might track more than that -- things like speed and location.
As it stands, our major roads are funded by taxes on gasoline. But that plan is old, and not working as well as it used to, the Times says:
The push (for a mileage-based tax) comes as the country's Highway Trust Fund, financed with taxes Americans pay at the gas pump, is broke. Americans don't buy as much gas as they used to. Cars get many more miles to the gallon. The federal tax itself, 18.4 cents per gallon, hasn't gone up in 20 years. Politicians are loath to raise the tax even one penny when gas prices are high.
At the federal level, a proposal to test the boxes on 10,000 cars has stalled. But several state and local governments are moving ahead and trying out mileage trackers -- and lots of consumers are signing up.
"Thousands of motorists have already taken the black boxes, some of which have GPS monitoring, for a test drive," the Times says. Oregon is testing the system on 5,000 cars, and Minnesota is trying it on 500. Illinois is trying it in trucks only, while Nevada has already done a test program with 50 cars. At least 17 other states are examining the idea.
There are several ways these devices could be used, including with or without GPS tracking. At least in Oregon, drivers who aren't comfortable with the idea of the government monitoring their driving habits in any way can instead pay a flat fee based on the average number of miles driven by residents, the Times says. In New York City, officials want to give the boxes the ability to pay parking meters.
We already know that many consumers don't mind this kind of technology if it saves them money on car insurance. Does it matter if the box belongs to the government? Would you consider using a government-issued mileage tracker?
More on Money Talks News:
Effe them!!! I drive 140 miles a day and pay $250 in tolls a month 600 in fuel... they can go effe themselves.... plus , car payments, insurance registration + inspection fees WTF!!!!!
WE THE PEOPLE Really should start thinking about taking the power back!!!!!
This is getting ridiculous. Constant complaining about how much we don't pay in taxes.
Connecticut's Gov doesn't have a problem raising taxes regardless of the cost of gas. Won't reduce the gas tax just add another revenue stream. duplicate tax...
So again less revenue due to higher gas mileage and reduced driving so what is the solution, RAISE TAXES... No household or private company operates that way. When will they reduce spending...
The reason gas tax does not work all you have to do is look at how much the state's pay's workers to work on the roads. Its because of the Unions they are killing us. I was a big union person way back when But now they just charge way to much for work to be done. Around $ 35 an hour here in Washington state. This is just a way for the damn Government to get more money from us. and to track your movements like the phone's. Its time to say no more
Tolls, gas tax, now mileage tax? Might have to have the wife stay home and not drive to work. Is that what the Government wants? Sure feels like it. Can get rid of car, repairs/maintenance, insurance, license fees, ect. Might come out ahead and in a lower tax bracket. Wife might even be happier and you know what that means.
Shouldn't they just make you wear a bracelet and tax you for any movement. If not how are they going to tax those that walk, or bicycle, etc. This is just another way to treat people differently under the law, similar to a graduated income tax.
Maybe instead they should just consider a per head tax. Equal for everyone.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
Banks often use sign-up bonuses as a way to get new customers to apply for one of their cards. But are you guaranteed to earn the bonus?
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'