Top lawmaker wants mileage-based tax on vehicles

Apr 28, 2009 By JOAN LOWY , Associated Press Writer

(AP) -- 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.

"Why do we need a pilot program? Why don't we just phase it in?" said Oberstar, the House Transportation and Infrastructure Committee chairman. 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. He was responding to testimony by Rep. Earl Blumenauer, D-Ore., who recommended that the transportation bill include pilot programs in every state to test the viability of a mileage-based tax.

Blumenauer said public acceptance, not technology, is the main obstacle to a mileage-based tax.

Pilot programs "would be able to increase public awareness and comfort and it would hasten the day we could make the transition," Blumenauer said.

Oberstar shrugged off that concern.

"I'm at a point of impatience with more studies," Oberstar said. He suggested that Rep. Peter DeFazio, D-Ore., chairman of the highways and transit subcommittee, set up a meeting of transportation experts and members of Congress to figure out how it could be done.

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.

"At this point there are a lot of things that are under consideration and there is also a strong need to find revenue," Oberstar spokesman Jim Berard said. "A vehicle miles-traveled tax is a logical complement, and perhaps a future replacement, for fuel taxes."

Gas tax revenues - the primary source of federal funding for highway programs - have dropped dramatically in the last two years, first because gas prices were high and later because of the economic downturn. They are forecast to continue going down as drivers switch to fuel efficient and alternative fuel vehicles.

Transportation Secretary Ray LaHood has ruled out raising gas taxes to make up for the funding shortfall, and the White House has rejected a mileage-based tax. They have not offered an alternative.

"The funding of the highway trust fund is a complex issue that will require consultation with Congress and consideration of a number of creative ideas," said Transportation Department spokeswoman Jill Zuckman. "The secretary looks forward to working with Chairman Oberstar and others as they consider how to keep the highway trust fund going."

A mileage-based tax has been unpopular in some states where it has been proposed. Critics say it unfairly penalizes drivers who live in rural areas and intrudes on privacy.

"When we can solve the equity issues to a majority's satisfaction in the Congress, when we can solve the privacy issues to the satisfaction of the American people, we can look at moving forward, but I just don't think we have the data or the experience right now to say we can set a timeline or a deadline," DeFazio said in a recent interview.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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User comments : 38

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Corban
2.6 / 5 (5) Apr 28, 2009
However, the usage of these GPS devices should explicitly follow good privacy principles, such as the collected data only being used for the expressed purpose. Furthermore, if its purpose is changed in the future, a driver must be informed of its new scope, and have the option to opt-out of the data collection. This would, at the very least, prevent insidious surveillance.

But of course, some wise guy's going to want that data in the name of counterterrorism (more like curiosity!)
x646d63
4.6 / 5 (10) Apr 28, 2009
HELL NO.

If it's the odometer you want to read, install an odometer reader.

If it's my constant location you want to know, install a GPS device.

As for mandatory GPS devices: HELL NO.

Yes, I am paranoid. And those of you who aren't should appreciate the work that those of us who are have done for your privacy.
MorituriMax
5 / 5 (8) Apr 28, 2009
How on Earth would they enforce this? If it's my car or even if I bought it from a dealer through a loan, how on Gods Green Earth would they keep me from "oops" breaking the GPS thing? Sounds like a huge step towards something like 1984 when they can wire you up like that.
Nik_2213
4.9 / 5 (7) Apr 28, 2009
ROFL !! There's a no-brainer, nil-tech way to do this-- Increase fuel tax !!

More important, this encourages frugal vehicle design and driving style, by charging gas-guzzlers more than the thrifty-- Regardless of actual distance travelled.
Azpod
4 / 5 (7) Apr 29, 2009
Higher fuel tax to save the planet by making high efficiency cars, right? Oh, wait. We ARE making high efficiency cars now? Crap... gotta add a miles-driven tax!

Just these people showing their true colors, folks. Better living by more government pork.
Amy_Steri
5 / 5 (8) Apr 29, 2009
This guy is a "Top Lawmaker" and chairs the House Committee on Transportation and he comes up with this crap? Anyone can see that this is a terrible idea.
Archivis
5 / 5 (4) Apr 29, 2009
People often wonder why I am considering moving out of this country. To answer them, I point at articles like this...
DGBEACH
2.5 / 5 (4) Apr 29, 2009
You guys have missed the real reason why they will need this type of taxing system...currently road maintenance is funded by the gas tax. But as they move towards electric and hydrogen powered vehicles this badly needed source of income will diminish. The only other way would be to raise the taxes on the electricity you purchase to power them.
Archivis
4 / 5 (8) Apr 29, 2009
Doesn't matter what the "real reason" is, the fact is that if they could get away with it, they would tax people for air consumption.

I have a hard time supporting any action of a broken system, regardless of the pretty face that's been thrown on it.
LuckyBrandon
3.8 / 5 (10) Apr 29, 2009
I agree with archivis. This is absolutely ridiculous. Say they charge us 1 cent per mile at first, in 10 years, the next politicial prick in the power house is going to raise it to 10 cents a mile.
This can only lead to a slippery slope, and we all already pay enough (in fact, too many) taxes....and all we get in return for it is our "freedoms" taken away for more false reasons.
DGBEACH
1.6 / 5 (8) Apr 29, 2009
The POINT here is that SOMEBODY has to pay for those roads that you will be driving on. They need a mechanism by which to generate the capital to do it. So either they increase infrastructure costs and add hundreds of thousands of additional pay-tolls, which also incurs labor costs, OR they SAVE your hard-earned dollars and have these devices incorporated into your vehicle by the manufacturer...the same manufacturers which will be owing us all a big favor in a few years...so perhaps they will be free of charge.
Times have changed my friends, we will have to change our habits. The first one to change is to start paying the ACTUAL prices for the things we consume, and to stop making the third world countries pay for our decadence!
Archivis
4 / 5 (9) Apr 29, 2009
I have to laugh here. You want to talk about the auto industry owing us a favor... fine, cut out the middle man and let THEM pay for it in return for the ridiculous amount of money they were just given that seems to have vanished faster than my illusions of a compentent government.

I understand that these costs have to be paid for from somewhere, I'm just sick and tired of being nickle and dimed to death. Verizon may do that too, but at least THEY provide good service in return for it.

The middle class is ludicrously under-paid, and yet time and time again, they are the ones who carry the burden because gee, someone has to. Don't want to pick on the poor auto industry? Fine! Let each state government cut 1% from it's budget to cover road repairs and construction. What's that you say? The states are running at a deficit? Sounds like someone's doing a really bad job of running things. If anything else was run that badly the people in charge would either be fired or given bailout money... Either way, problem solved.
DGBEACH
2 / 5 (8) Apr 29, 2009
I am truly sorry for you, having to live in such a rich country, and actually having to pay for things on top of it all...but you'll get no pity from this side of your of your border.
Archivis
3.9 / 5 (8) Apr 29, 2009
First of all, let me just say that I am NOT looking for pity. All I am saying is that the government all ready gets enough of the money that I work myself half to death to earn, the line has to be drawn somewhere and it's short sighted political gimicks like this that not only cross that line but blow so much smoke that you can't even tell there was a line drawn to begin with.

I have no problem paying for the things we enjoy in the US. The problem is that a majority of the time, the money that is taken for such things doesn't get used for them. Instead that money is rerouted, transfered, loaned, etc until there isn't any left. THEN the government says "We need to inscrease the amount of this tax because the funds aren't there, whoops, we're awful sorry, here look at this shinny object and forget about the whole mess while we help ourselves to just a little more of your money."

Perhaps my views are a little skewed, but I live in New Jersey... sorry.

In addition to the above stated reasons, I can go one further. Stop and think for a moment what this tax will do to the transportation industry. We all ready enjoy the highest traqnsportation costs in the continental US here in Jersey thanks to taxes both state and federal, and tolls. Any one who's been here knows we are the toll booth capital of the country. This will not only effect the individual, but also any company that has to transport goods of any kind.

Again, I don't want pity... I want the lawmakers to pull their collective heads out of their respective rear ends and stop trying to squeeze "just a little more".
dbren
4.6 / 5 (10) Apr 29, 2009
We have a mileage tax; it's the gas tax, and it's progressive as well. Drive a bigger car, pay more. There is no reason for this new behavior tax. No reason except to install the infrastructure to keep track of the comings and goings of citizens, and to try to compel their behavior through targeted taxation of travel that the government doesn't like. I don't give a damn if the government likes or doesn't like where and when I drive. They work for ME. I don't have to justify to my servants when and where I choose to go.
LuckyBrandon
4.2 / 5 (5) Apr 29, 2009
DGBEACH-where are you from?

Archivis-been there myself, and yea, you need a 20 spot just to get down the dang block there...and I STILL agree with you 100%
LuckyBrandon
3.7 / 5 (6) Apr 29, 2009
dbren- BRAVO!!!!!
Archivis
4.2 / 5 (5) Apr 29, 2009
Transportation is what I do. I know it well, and it gets worse on nearly a weekly basis. Couple that with the corruption and backdoor politics etc, etc and you see why my home state is in the condition it's in.

It doesn't take a whole lot of intellect to figure this stuff out, but still every time they have one of their lovely little sharades, err elections, the same things happen. George Carlin said it best; "Garbage in, garbage out". Just makes me sick. Not to mention the fact that I'm not too keen on the government knowing where I am any time they please. Sounds like a pretty and dressed up version of stamping a serial number on our arms...
vlam67
2.3 / 5 (6) Apr 29, 2009
Apparently from the posts so far, "user pays" is a ridiculous concept. Long live Hummers and road tanks!
RJ32
4.6 / 5 (5) May 02, 2009
Since I am retired and about the only driving I do is for charitable purposes, (about 40 miles a day), and as I live on a very limited income, I estimate that I'll have to cut my driving about in half because I can barely afford what I'm doing now. How about cutting government expenditures instead of raising taxes? Let's start with congress and work our way down.
LuckyBrandon
4 / 5 (4) May 02, 2009
RJ32-exactly my thinking
MikeB
5 / 5 (3) May 02, 2009
Hey, I have an idea!!! How about we fire everyone in federal government and the states can take care of their own highways!!!???
Then those XXXXXs can get real work instead of stealing all our money.
RAL
5 / 5 (4) May 03, 2009
Cars aren't selling these days. How much will this add to the cost of a new Chrysler Snail Darter? Design, manufacturing, installation, maintenance -- all so the government can track your vehicle location day and night. Presumably they will all be hacker proof, and an alarm will go off on SkyLab whenever someone removes it from their vehicle and places it in their garage to avoid paying taxes.

And at the end of all this, anyone not an Obama cabinet officer will be expected to pay a new tax.

The Democrats are clearly in charge.
laserdaveb
5 / 5 (6) May 03, 2009
first we get the "unpatriotic act" now they want to track our every move....and if they can, they will.perhaps we should require our representatives to read the constitution...and respect it.
barakn
3 / 5 (4) May 03, 2009
Since there are obvious alternatives to installing a GPS-enabled device (an odometer reader, or even having the odometer checked by a human during an annual emissions inspection), the intent of this more expensive approach is obviously to have us all get used to having Big Brother devices monitoring our movements. I wonder what Oberstar's constituents think of this?
zapme
5 / 5 (4) May 03, 2009
Ram it through! Obviously an odometer reader wouldn't work; it can't keep track of our every move!! F##k this bill and F##k it's supporters. once we lose our freedoms that our brave mothers and fathers, brothers and sisters, aunts and uncles, grandmothers and grandfathers, fought and died for, we will never get them back. Freedom aint' free, and the price for that freedom, my friends, is eternal vigilance. We can not afford to let this happen. All in all it's just another brick in the wall.
GrayMouser
5 / 5 (2) May 03, 2009
You guys have missed the real reason why they will need this type of taxing system...currently road maintenance is funded by the gas tax. But as they move towards electric and hydrogen powered vehicles this badly needed source of income will diminish. The only other way would be to raise the taxes on the electricity you purchase to power them.

In that case they must be willing to drop the tax on gasoline and replace by it by this mileage tax...

I thought not.
GrayMouser
5 / 5 (2) May 03, 2009
Apparently from the posts so far, "user pays" is a ridiculous concept. Long live Hummers and road tanks!

Users are already paying. We have a gas tax that is a major part of the cost at the pump. We have a tax on tires. We have toll roads and bridges that collect money used on more than those roads or bridges.
zevkirsh
5 / 5 (2) May 04, 2009
RAISE GAS TAXES.
RAISE GAS TAXES.
RAISE GAS TAXES.

anyone supporting a mileage tax, is not only seen as brazen as a gas tax raise supporter, but also, as much more foolish. the mileage tax was born out of some academic's think tank brain. the littany of problems with such a program is so cumbersome, they must have 'assumed them away', in all of their theoretical calculations.

govenment......never failing to waste money on thinking up foolish ideas.
Schnarr
3 / 5 (2) May 04, 2009
I think everyone should just stop driving and use public transportation. If that was made a priority it would become efficient. That way no one has GPS tracking them all the time and it helps save the environment. Road costs would decrease as traffic levels decrease, unlike mass-producing gasoline and hybrid vehicles that just add to the congestion.
magpies
5 / 5 (2) May 04, 2009
I like how ppl say how our grandfathers and such did much fighting for our freedoms... And forget that its not suppost to have stoped with ur grandpa. Ppl dont know how to fight anymore I swear all cows.
dsl5000
5 / 5 (2) May 04, 2009
Yea, well there are a lot of things that aren't working in the U.S. and this would be another example... Research should be done on how to make roads more durable then laying new asphalt every year...but i suppose asphalt makers would send their lobbyist to stop that idea...
Lord_jag
5 / 5 (2) May 04, 2009
You know... you car already records your speed etc. So if they track your gps location as well as heading etc, then they can hit you for any moving violation when they read out your meter...

Or.... They could just use your "Onstar" or whatever that thing that for made to relay out this info and send you a ticket right away! Oh and take a picture of the driver so they know who made the violation too.

OOP! you did 55 in a 50 zone! Here's your ticket!
Illegal U-turn with noone around? Ticket!
Swerved onto the wrong side of the road (to miss a child) Ticket!

And then... all of the OTHER privacy rights of them know where and when you drive your car every day!







This blatant attempt at making this 1984 is disgusting and obvious.
LuckyBrandon
2 / 5 (2) May 04, 2009
schnarr-that would cause a sistuation no different than animals we pack into shit houses to pump milk...aka, disease will fly ever quicker that way. i personally wouldnt want jammed into public transportation with other people.

magpies-thats why we should have required military service...so everyone is at least available at some point in their lives to fight. but MANY of our "ancestors" did fight and die, and you should respect that fact.

Archivis
5 / 5 (1) May 07, 2009
Don't know if I agree with that one thought Brandon. While I do agree that military is both useful and needed, I do not agree that everyone should be forced into service, in any capacity.

That in and of itself is another slippery slope that once started down, can lead to dire things indeed.

There will always be those among us who refuse to fight, for one of a thousand reasons, some just, some unjust, myself included in that particular count. (Would be happy to discuss my reasoning there in PM, feel free to drop me a line if you wish.) I do see why you feel that way, from some perspectives it actually would be a great idea. But forcing people to do anything is never the answer. Plus, I am a firm believer that there are many other ways a person can fight for what they beleive in, and in that regard, then pen shall always be mightier than the sword.
LuckyBrandon
3 / 5 (2) May 07, 2009
Well my thinking isnt necessarily force. Just draw the lines of citizenship in the US to require it. People would still have a choice, and the population the government is responsible for would in turn go down, freeing up finances to provide better schooling, or health care...
But what you say is true, that could lead down a slippery slope as well...
The pen is mightier than the sword today, but then again, the sword can take the pen away and put it in new hands :)
Archivis
not rated yet May 08, 2009
I like the way you think lad...
Noumenon
3.7 / 5 (3) May 17, 2009
Global warming (agw) is a scam designed to usher in social engineering. Imagine a team of Nancy Pelocies with statisticians at their side, ready to solve every problem that is a consequence of freedom.

The idiotic milage tax is not becase gas tax revenue will decline, it is to change behavior, it is social engineering and a attack on personal freedom.

You can't force 'solutions', they have to come about naturally.

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