A look into the future shows an alarming dilemma in the way our country funds its highway construction and maintenance costs.
The largest funding source for highways is the gasoline and diesel fuel tax. The essence of the future problem is that the fuel tax, over the next twenty years, will decline as vehicles use less gasoline and diesel because of better fuel efficiency and/or the switch to hybrid or electric power sources. As we green our planet, we, in fact, will run out of adequate highway funds.
Starting some six weeks ago, a plan has bubbled around in my head and finally has enough body to it to post it here. Concept only is described. Omitted are the details – I am seeking funding to fully research the concept and its many ramifications and do not want to divulge too many details. And there are many!
The tax plan has three parts:
· A tax that will encourage resource conservation
· A tax that will discourage the use of petroleum based fuels
· A tax that will discourage miles driven
Regarding the last of the three, there has been much written about measuring mileage driven using GPS technology. This rightly causes invasion of privacy concerns, because time and location data from the GPS could be inappropriately used.
In the Schaul concept (clever, creative name) is a system for measuring mileage and collecting a mileage-based tax that does not depend on GPS technology, does not invade privacy, and seems reasonably easy to collect. This may be the greatest value of the concept.
The various parts of the three tax bases adjust easily to replace the amount of fuel tax now collected, and as the fuel tax declines, can continually adjust to keep revenue at a level necessary to maintain our highways and bridges.
There are competing realities here. First, no one wants to pay taxes or add complication to the way they are calculated and collected. Second, the highway infrastructure will gradually wear out if we do not continue to improve it as population grows, and maintain it as wear and tear takes its toll. Making the taxes realistic and based on measurable factors, with easy collection systems seems a good way to proceed.
Your comments are always welcome.
4 comments:
Charlie,
what is the non gps system that you dream of to tax miles? You write...."is a system for measuring mileage and collecting a mileage-based tax that does not depend on GPS technology, does not invade privacy, and seems reasonably easy to collect. " But I don't see the system that would record our miles, but not track it.
I liked the blog that your daughter 'helped' with and I agree with you. Throw the bums out! (Drew)
I don't want to say too much, but there are other ways to measure mileage other than GPS. It is not the taxing authority's business where you have been, just how far.
I've been a proponent of taxation based on usage (i.e., mileage) for a long time. However, a problem arises when adjacent states want to "divide" taxes up based on interstate travel. Like me, those that live close to a border may use roadways that belong to various local, state and federal entities. Recording my travel would be overly burdensome (potentially) and doesn't seem justifiable. Lots of hurdles to overcome, and this is just one of them.
Dealing with interstate division of taxes a problem. It is under consideration but not yet easily solved.
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