Wednesday, June 28, 2006

Oregon to test mileage tax as replacement for gas tax

CORVALLIS, Ore. — Let's pretend someone waves a magic wand and turns every car into a fuel-sipping, gas-electric hybrid. What difference would it make?
The air would be cleaner. Oil imports would drop.

And the transportation budgets of Oregon, Washington and almost every other state would deflate like a punctured balloon.

Think about it: Most money for highway construction and maintenance comes from state and federal taxes on gasoline. If people bought a lot less gas, highways would get a lot less money.
In Oregon, a state task force has concluded this scenario isn't all that far-fetched. It has proposed a possible long-term replacement for the gas tax, something no one has tried before:
A tax based on how many miles you drive.

LINK to story

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