Editorial: Govt. could be driven to a per-mile tax
February 19, 2010
So many industries are taking steps to “go green” as concern for the environment grows… So many industries are taking steps to “go green” as concern for the environment grows increasingly prevalent. Automobiles — perhaps the most scorned culprit of environmental decline — are becoming outfitted with new technology that increase fuel efficiency and shorten carbon tire tracks. Better fuel efficiency means less time spent filling up at the pump, which means less tax collected on gasoline.
When the federal government wants more money, it often means increasing a tax somewhere along the line. While gas prices have diminished from their spike in 2008, the average price for a regular gallon of gasoline for U.S. drivers reached greater than $4 in the summer of 2008 — increasing the price of gas would surely cause more than a few unhappy motorists. With that said, the federal gas tax has remained at 18.3 cents per gallon since 1993, according to the Pittsburgh Tribune-Review. Individual states, of course, also charge a determined tax rate.
A recent RAND Corp. study looked at an alternative way to tax motorists, a way that might still not be popular but could be more effective. Instead of taxing per gallon of gasoline, the government would tax per mile driven. A blanket policy would mean everyday drivers would be taxed the same as, say, commercial trucking companies. Still, this new way of taxing could offer advantages than the traditional per-gallon gas tax.
To measure the tax, the fuel consumed would be multiplied by the vehicle’s fuel efficiency to get an estimate of miles traveled. To do so, however, vehicles would need GPS units installed to determine range of travel — a measure that would be initially expensive but could pay off with time. More suspicious drivers might not like the thought of a GPS in their vehicle, but would such a device be much different than the common OnStar function in GM cars?
The study found that a tax of 1.1 cents per mile could generate an estimated $35 billion in a year. In 2006, the revenue from the federal gas tax amounted to $31.4 billion, according to transportationfortomorrow.org. But the new tax could be more flexible than a flat-rate gas tax. The rate could be increased for drivers in certain areas during peak traffic hours to potentially alleviate headache-inducing roadway congestion.
Consumers now have the option of buying hybrid cars and vehicles that rank better than ever in fuel efficiency. While there could be less incentive to buy more ecologically friendly vehicles if the tax were based on distance driven, every driver will have a very direct incentive to limit his driving. Fewer cars on the road means a smaller impact on the environment and less wear and tear on roads. The government could also consider lowering the per-mile fee for more fuel-efficient vehicles in order to keep them attractive to buyers.
The money used by the fuel tax goes in part toward road construction and maintenance. But factoring in inflation and newer, more fuel-efficient vehicles, the gas tax has decreased in value. There will never be a popular solution when it comes to the government asking for more money, but this solution offers a certain flexibility for both the government and drivers.