Netherlands The Latest To Propose Mileage Tax That Requires GPS For Tracking Driving

from the what's-wrong-with-the-gas-tax? dept

Matthew Cruse alerts us to the news that the Netherlands is the latest in a long line of governments that are considering a "mileage tax" that would require drivers to have GPS devices that track how far they drive, and then tax you for every mile driven. Various US states, including Oregon, California and Massachussetts have toyed with such ideas, and while some in Congress have pushed for it on a national scale, the Obama administration has come out against the idea.

There are lots of problems with the idea, including the privacy implications of the government collecting data on your driving habits. Plus, the massive expense of equipping cars with such devices should not be underestimated. But, the biggest question of all is why such a thing is needed at all. We already have taxes on fuel, which approximates the same thing (the more you drive, the more you pay) which doesn't have the same expense or privacy implications and has the added benefit that it helps encourage more fuel efficient driving. The idea to do a GPS-based mileage tax seems like one of those things that politicians come up with because they want more money, and they get infatuated with some new technology, without thinking through the implications (at all).

Filed Under: driving, gps, mileage tax, netherlands

More Congress Critters Want To Track And Tax Your Driving Habits

from the why? dept

For years, various state politicians have pushed the idea of a "mileage tax" for driving, and it's never made much sense at all. Yet, just a few months ago, we noted that some politicians in the federal government were pushing the idea as well -- even though the Obama administration said it would not approve such an idea. Still, that's not stopping some politicians. Rep. James Oberstar is so strongly in support of a plan, he says he doesn't want any pilot programs, studies or information about such a plan, he thinks it should just be implemented right now.

Of course, these plans have never made much sense at all. They would be crazy expensive, in that every car would need to be outfitted with a GPS device, and then that info would have to be communicated to the government (certainly something of a privacy concern). And, the really silly thing is that we already have a much better and cheaper proxy in place: gas taxes. Not only that, but the gas tax at least encourages people to use more fuel efficient vehicles, and increases the demand for alternative energy vehicles. So it's difficult to come up with a single viable reason for a mileage tax, but that's apparently not stopping Oberstar from demanding that it be started right now.

Filed Under: driving tax, james oberstar, mileage tax, politicians

Mileage Tax Idea Going National...

from the driving-while-intaxicated dept

After years and years of politicians in Oregon mentioning the idea, late last year reports came out that the state was seriously considering a mileage tax for drivers, involving attaching a GPS device to your car that would track how far you drove. Earlier this week, a similar idea popped up in Massachusetts, where it was amusingly called "faster, cheaper, simpler" despite it being none of the above when compared to a gas tax.

But why waste time at the state level when you can go national?

Yes indeed, as a few readers have sent in, our new Transportation Secretary says he's open to the idea and (check out the timing!) a "blue-ribbon national transportation commission" is going to release a report next week recommending just such a system. It will involve installing a device on every car which tracks where you drive and when you drive -- so that they can also tax based on time of day (rush hour costs more!) or if you're taking highways or side streets. When you have a politician suggest such a thing just days before a "blue-ribbon panel" comes out with a paper on the idea, you know it's not idle speculation, but the deal has basically been agreed to. The "I'm thinking about it" comment is just the trial balloon for the legislation that is clearly already written and ready for introduction.

What's amazing is that all of those pushing for this idea apparently haven't paid attention to any of the massive backlash that comes around every time this idea is suggested at the state level. It's not "faster, cheaper, simpler." It would take quite a while to get this working, it's expensive and it's cumbersome -- especially compared to a gas tax. It also has the added downsides of getting people worked up over privacy issues and (bonus!) does little to encourage more fuel efficient driving or getting ourselves off foreign oil. Update: Mark sends in the news that the Obama administration is already saying it won't approve this idea.

Filed Under: federal, mileage tax