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Report: Charging taxes by the mile?

By Fred Meier, USA TODAY
Updated

The Obama administration has considered a tax on your car based on the miles you drive -- then backpedaled on it this week when word leaked out, according to a report by David Shepardson of the Detroit News Washington bureau.

The report says the scheme was included in a leaked draft of a bill that would renew the federal highway bill. According to the News, it proposed a euphemistically named "Surface Transportation Revenue Alternatives Office" at the Federal Highway Administration to "study framework that defines the functionality of a mileage-based user fee system and other systems."

The feds as well as many states are looking at many alternatives as they face taking a pay cut from gasoline taxes. Higher gas mileage rules (which will cut fuel use but also cut fuel tax revenue) and government subsidies aimed at putting more electric cars on the road (that will pay no fuel taxes) have bureaucrats trying to figure out where to replace that money for roads, including with fees on electric cars.

While it sounds complicated to collect, GPS technology would let the government tally your miles traveled -- not to mention where your car is at any given moment -- fairly easily. In-car navigation services do something similar already to generate real-time traffic information.

The leaked pay-by-the-mile tax -- a way to raise money that the News says is also being considered by at least three states -- drew immediate criticism and was quickly disowned by the Obama administration, which told the News it was a working draft it did not support.

You can check out the News report at the link above. It details other policy and safety proposals included in the draft.

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