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Tuesday, Feb 9, 2010
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Mileage-based tax proposal threatens rural America

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Wilson County News
November 17, 2009 | 9 comments

Increased automobile fuel efficiency coupled with Americans choosing to drive less has caused some officials to consider a mileage-based tax as a replacement for the current gasoline tax.

According to the American Petroleum Institute, drivers in all 50 states pay a federal excise tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, in addition to state taxes. In Texas, gasoline and diesel both carry a 20-cent-per- gallon tax.

The New York Times reported March 9 that the National Surface Transportation Infrastructure Financing Commission has called for a temporary 10-cent-per-gallon increase to the federal gasoline tax, which would bring the tax to 28.4 cents. The commission also called for a transition to a roughly 2-cent-per-mile fee “as the dominant federal funding source for transportation projects by 2020.”

The idea of a mileage-based tax replacing state and federal gasoline taxes is not new, as the Oregon legislature began studying the concept in 2001. Trucking industry publication Land Line Magazine reported Oct. 29 that the Nebraska Highway Commission is also considering a mileage-based tax for drivers.

Earlier this year, Secretary Ray LaHood of the U.S. Department of Transportation said a policy of taxing drivers based on miles driven is an idea “we should look at.” Shortly after, the Obama administration said it would not consider such a policy.

The San Antonio Express-News reported Oct. 3 that LaHood’s predecessor,
Mary Peters, was also in favor of the idea. Peters, while speaking Oct. 2 at the Austin-San Antonio Corridor Growth Summit in San Marcos, said the federal highway trust fund required extra allocations beyond gasoline-tax revenues over the past two years in order to remain solvent.

Peters said the tax would be levied based on data collected from a vehicle’s navigation device. Other devices at fueling stations would be employed to read information from navigation devices, which Peters admitted could infringe upon a driver’s privacy.

The tax also has the potential to unequally tax motorists living in rural areas such as Wilson County, because these residents tend to drive longer distances. The U.S. Census Bureau’s 2006-08 American Community Survey estimates that Wilson County motorists have a 32.1-minute mean travel time to work, compared to the national average of 25.3 minutes.

“Any vehicle miles tax will have rural Americans, who inherently drive many times the numbers of miles as city dwellers, paying even more to subsidize the endless freeways and interchanges of those who choose life in the urban jungle,” said Robert Pratt of the Lubbock-based “Pratt on Texas” radio show Oct. 7.

The Journal of Commerce reported that Fred Smith, president and CEO of FedEx, called the idea of a mileage-based tax “ill-advised,” during his remarks to the National Press Club in Washington, D.C., Feb. 23.
 


Your Opinions and Comments
 
What the....?  
Disillusion, TX  
November 20, 2009 5:56pm
 
 
White flight, eh? There ya go, blame inner city decay on whites leaving the cities that were ruined by corrupt, liberal politicians and judges. Sounds like the kind of anti-white ... Read More Read More
 
 
Derek  
November 20, 2009 11:40am
 
 
... Read More Read More
 
 
Not Fair  
Ames, IA  
November 20, 2009 11:24am
 
 
It could cost 100 million or more per mile to construct a new highway in the city but only 5 million in a rural setting. Charging by the mile is just not fair.
 
 
Senior Citizen  
November 18, 2009 7:13pm
 
 
Yea, Derek. Let's all ride our horses to work ... Oh, but they emit gases into the atmosphere. Guess we better stick to walking and try not to breathe too deeply.
 
 
Little guy  
On the Ranch  
November 18, 2009 2:23pm
 
 
If you use a vehicle on your farm or ranch that you also drive it on the highway, you have to pay the fuel tax on every gallon you purchase/use, now they want to charge us ... Read More Read More
 
 
Chris Johnson  
Floresville  
November 18, 2009 11:33am
 
 
One thing that bothers me is Mary Peters' comment about how "the federal highway trust fund required extra allocations beyond gasoline-tax revenues over the past two ... Read More Read More
 
 
What the....?  
Disillusion, TX  
November 18, 2009 8:59am
 
 
Urban sprawl is a consequence of population growth and inner city decay. It is almost inevitable and attempts to "curb" it often result in even worse governmental ... Read More Read More
 
 
Derek  
November 18, 2009 7:53am
 
 
I like it. It's a way to curb suburban sprawl. With 90% of the American population living in an urban metropolitan area, it would be a way to make us look for alternatives ... Read More Read More
 
 
What the....?  
Disillusion, TX  
November 17, 2009 5:28pm
 
 
As little as I drive, this little increase won't affect me much but even if it did, I'd gladly pay it rather than live anywhere near the urban jungle. ... Read More Read More
 

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