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Government

Draft Proposal Would Create Agency To Tax Cars By the Mile 932

theodp writes "The Hill reports that the Obama administration has floated a transportation authorization bill that would require the study and implementation of a plan to tax automobile drivers based on how many miles they drive. The plan is a part of the administration's 'Transportation Opportunities Act,' and calls for spending $200 million to implement a new Surface Transportation Revenue Alternatives Office tasked with creating a 'study framework that defines the functionality of a mileage-based user fee system and other systems.' The office would be required to consider four factors — the capability of states to enforce payment, the reliability of technology, administrative costs, and 'user acceptance' — in field trials slated to begin within four years at unspecified sites. Forbes suggests the so-called vehicle miles traveled (VMT) tax should be called the Rube Goldberg Gas Tax, because while its objective is the same as the gas tax, the way it collects revenue is extremely complex, costly and cumbersome." The disclaimers are thick on the ground, though; note, this is an "early draft," not pending legislation.

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