Wednesday, April 29, 2009

Top Lawmaker Wants Mileage-Based Tax on Vehicles

A House committee chairman said Tuesday that he wants Congress to enact a mileage-based tax on cars and trucks to pay for highway programs now rather than wait years to test the idea. Rep. James Oberstar, D-Minn., said he believes the technology exists to implement a mileage tax. He said he sees no point in waiting years for the results of pilot programs since such a tax system is inevitable as federal gasoline tax revenues decline. Oberstar is drafting a six-year transportation bill to fund highway and transit programs that is expected to total around a half trillion dollars. A congressionally mandated commission on transportation financing alternatives recommended switching to a vehicle-miles traveled tax, but estimated it would take a decade to put a national system in place. "I think it can be done in far less than that, maybe two years," Oberstar said at a House hearing. The tax would entail equipping vehicles with GPS technology to determine how many miles a car has been driven and whether on interstate highways or secondary roads. The devices would also calculate the amount of tax owed...AP

This type of tax would dixcriminate against The West and rural folks who drive long distances.

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