Fed Proposal To Do Away With Gas Tax Requires Monitoring Every Vehicle

Would we be better off doing away with the federal gas tax, replacing it entirely, or in part, by a pay-per-mile system?

The federal government appears to be in the early stages of finding out. An early draft of the transportation authorization bill from the Obama administration, circulated this week, would require the study and implementation of a plan that would tax motorists based on how far they drive, not on how much fuel they use.

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Brembo - 5/6/2011 10:51:30 AM

-1 Boost

Interesting.

jeffgall - 5/6/2011 11:11:05 AM

+4 Boost

Although this will benefit me with my short commute to work and lower MPG vehicles (Audi Q7 and Mustang GT), the plan seems counterintuitive to promote high MPG vehicles. Many people cannot change their commute to work (unless they move), but many can change the amount of gas they use by buying more fuel efficient vehicles, thus getting taxed less by today's tax per gallon. With this new plan, I am taxed the same regardless of the amount of fuel I use.

Agent009 - 5/6/2011 11:55:45 AM

+3 Boost

You know I really fail to see why they are doing this.

High MPG vehicles inherently buy less gas so they are automatically taxed less. Now doing away with the extra diesel tax would be a good idea to bring it inline with regular gas.

AlleVier - 5/6/2011 2:59:30 PM

+1 Boost

009, did you read the article? The purpose of this study is to figure out how to stabilize highway funding because most of it is tied to gasoline consumption. They're starting to realize that if more vehicles started running on different fuels (e.g., electricity) their funding would decrease even though highway usage remained the same.