"TAXES? IT WAS NEVER ABOUT TAXES"

One of the major problems of using tax policy to alter a perceived behavior is it might work. When you hear of a new tax on smoking in an attempt to curb smoking that will go towards pre-K schooling, you have to ask the supporters if the tax works and smoking decreases, will the pre-K spending will decrease at the same rate.

You will not be answered.

Oregon is now having to deal with a similar situation. UPI is reporting that the state is now toying with the idea of taxing miles driven instead of gasoline. It seems the state has been promoting fuel-efficient cars and driving less (like most states) and now has begun to realize that if those goals are met, less gas will be bought and less tax revenue (24 cents/gallon) will be collected.

“Eighty percent of Oregon's highway money comes from its 24-cents-per-gallon gas tax. If the state promotes reducing gasoline consumption and consumers tend to buy the fuel-efficient vehicles, including hybrids, highway revenues would take a hit, The New York Times reported.

The test program uses a global positioning system to track miles driven, using a black box to calculate how many miles are clocked in-state, out of state and during rush hour.

The experiment is designed to increase state revenue for road maintenance without raising gasoline taxes…”

Wouldn’t want to lose that tax revenue now, would we?