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Page added on May 9, 2011
Obama administration floats draft plan to tax cars by the mile
The Obama administration has floated a transportation authorization bill that would require the study and implementation of a plan to tax automobile drivers based on how many miles they drive.
The plan is a part of the administration’s Transportation Opportunities Act, an undated draft of which was obtained this week by Transportation Weekly.
The White House, however, said the bill is only an early draft that was not formally circulated within the administration.
“This is not an administration proposal,” White House spokeswoman Jennifer Psaki said. “This is not a bill supported by the administration. This was an early working draft proposal that was never formally circulated within the administration, does not taken into account the advice of the president’s senior advisers, economic team or Cabinet officials, and does not represent the views of the president.”
News of the draft follows a March Congressional Budget Office report that supported the idea of taxing drivers based on miles driven.
Among other things, CBO suggested that a vehicle miles traveled (VMT) tax could be tracked by installing electronic equipment on each car to determine how many miles were driven; payment could take place electronically at filling stations.
The CBO report was requested by Senate Budget Committee Chairman Kent Conrad (D-N.D.), who has proposed taxing cars by the mile as a way to increase federal highway revenues.
The proposal seems to follow up on that idea in section 2218 of the draft bill. That section would create, within the Federal Highway Administration, a Surface Transportation Revenue Alternatives Office. It would be tasked with creating a “study framework that defines the functionality of a mileage-based user fee system and other systems.”
The department seemed to be aware of the need to prepare the public for what would likely be a controversial change to the way highway funds are collected. For example, the office is called on to serve a public-relations function, as the draft says it should “increase public awareness regarding the need for an alternative funding source for surface transportation programs and provide information on possible approaches.”
The draft bill says the “study framework” for the project and a public awareness communications plan should be established within two years of creating the office, and that field tests should begin within four years.
The office would be required to consider four factors in field trials: the capability of states to enforce payment, the reliability of technology, administrative costs and “user acceptance.” The draft does not specify where field trials should begin.
The new office would be funded a total of $300 million through fiscal 2017 for the project.
8 Comments on "Obama administration floats draft plan to tax cars by the mile"
steam_cannon on Mon, 9th May 2011 10:12 am
I see two problems with this idea.
1st it’s invasive and turns every road into a toll road.
2nd this would not be a “change to the way highway funds are collected”, this would just be an additional tax. In the US we just pile on taxes. We don’t roll taxes back. So this will just be a new tax.
eclipse on Mon, 9th May 2011 11:32 am
It’s so sad that Democrats can only think of tax and tax and more tax. And cone to think of it Obama said he would bring change and made everyone think he was going to do things outside the box. You Democrats will not get my vote again as a matter of fact I think that we Libertarians and Independents need to go on the offensive and declare war on both parties and toss both of these bums out before they sell the furniture and the White House too! You people make me sick to my very soul. I bet a six year old could run the country better than the two party bum system we have now.
DC on Mon, 9th May 2011 1:05 pm
I think Joeseph Tainter would love this plan. It would offer real-world proof that societies keep investing in complex, energy intensive and, ultimately, futile attempts to fix problems. This is doublely true here, the fix for a complex overburdened system is too add even more complexity to the system!
This may not be such a bad idea really come to think of it. If the goal is too hasten the collapse of ameri-duh, then this plan should receive all the funding it needs, and then some! By all means encourge this plan, it would not be as efficent as burning money directly, but its pretty darn close.
Hank Smith on Mon, 9th May 2011 4:08 pm
A vehicle mileage tax for highway repair and maintenace is based on a horrendously false assumption. If all vehicles pay the same tax per mile, the assumption is that all vehicles do the same damage to the roads per mile. This is inherently false. Damage done is based on vehicle axle weight, where a doubling of the weight causes an increase of from 2^3 to 2^4 times as much damage (from 8 to 16 times as much). A tripling of weight causes from 3^3 to 3^4 the damage (27 to 81 times). This is why trailer trucks have to pay such very high road taxes. In Europe, some countries charge an annual registration fee based on vehichle weight,a much more equitable arrangement. Under the proposal under study, a subcompact car would pay the same tax as a large SUV per mile, while the SUV causes from 8 to 16 times as much damage to the roads. Thus, the small car owner is subsidizing the SUVs. There is a slightly higher tax currently being paid for heavier vehicles in that their miles per gallon is lower: therefore more gas used per mile, therefore more gas tax per mile. But this difference is negligilbe compared to the greater wear and tear done per mile. Taxing by weight would be more fair, and would also encourage the purchase of lighter vehicles, resulting in less highway damage, and less overall gasoline consumption nationwide.
Hank Smith
EOTWAWKI on Mon, 9th May 2011 11:17 pm
Ridiculous. Just add the tax to the gas tax, that tax is already “per mile” e.g. the more you drive the more gas you use the more tax you pay. Why should a super efficient prius pay the same tax per mile as an SUV? And there would be no need for any fancy electronic system to monitor it or problems collecting it. Duh!
David on Tue, 10th May 2011 12:35 am
The general issue here is about individual energy use.
Here in the UK there are discussions about something called TEQ’s or Trade able Energy Quotas.
http://www.teqs.net/
Please read it. It’s not about Tax or taxing more.
If you do check it out, like me you will probably find some flaws. But with modifications I think it is the most sound method of individual energy management that has been considered so far.
We need the individual to think hard about their energy use, and TEQ’s are intended to do just that.
DC on Tue, 10th May 2011 1:07 am
It is intersting how many of you(small sample) see this purely in economic terms(ie its a taaaaax grab!) While ignoreing the larger issue. The road systems in North america are essentially based on a flawed business model. Back in the good ol days, when money was(supposedly) flowing freely, we masked the huge costs of road through the illusion of ‘growth’.
This scheme however, is appealing to the United War States of ameri-duh, because it allows for tracking vehicles at the push of a button. Its Big-brother appeal probably out-weighs w/e economic benifts in their eyes.
Consider this, a mechanism allready exists to track vehicle-miles. Its called, a gas-tax its fair, if you drive you pay, if, if you bike or walk, you dont. Per gallon\litre whatever, its collection mechanism is allready in place, its foolproof, cant be evaded and requires no complex and finicky technology to implement.
OR, you can propose this expensive intrusive and unwieldy plan. While your at it, why not propose a few trillion dollars for so-called ‘Smart-roads’ to go along with it. A match made in car-heaven! Notice, its a new office, which means, more governement, more personel, more complexity etc etc, No consideration given to useing simple and existing methods to achieve the goal. What is the goal anyhow? to track vehicles, or raise money? If its to raise money, governments are no strangers to that, so why this scheme is what people should be asking, not fretting over calling it a tax-grab or whatever..
Rick on Tue, 10th May 2011 2:55 am
This will do nothing to address Peak Oil.