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Kulongoski Proposes Taxing Oregonians by the Mile

Oregon’s Governor, Ted Kulongoski, seems to be taking a page from the Microsoft playbook with his new proposal to replace the tax on gasoline with a mileage tax (volunteers in a trial program were charged $0.012/mile). The new program, which is going to cost $20,000,000 just to figure out whether or not it’s economically feasable, will use GPS systems to track how far your car has traveled. The reason for the proposal?

As Oregonians drive less and demand more fuel-efficient vehicles, it is increasingly important that the state find a new way, other than the gas tax, to finance our transportation system.

The governor also promises that even though GPS units will be uniquely identifying and tracking the location of every car on the road, “privacy will be respected”. I think we all know how long it’ll take for police bureaus to find an excuse to get access to that database.

Unlike the relatively simple gas tax, the new proposal seems likely to come with higher administrative costs, since the Governor has also promised that rural Oregon (where the roads are likely to be less used and driving distances are likely to be far greater) will not be “adversely affected”. What this will likely mean in practice is dividing the state into a number of administrative zones, each with its own “pricing scheme”. I also think we all know how long it’s going to take for members of a community that’s near the border between two zones to start complaining to the legislature if they happen to be situated in an an area in which the state has decided driving is more expensive. (One also assumes that it’s going to cost money to hire people to set up and administer the database and all the other infrastructure.)

And just in case you decide not to install a GPS unit in your old Ford Aspire, the Governor has you covered: he’s just going to raise your gas tax by $0.02/gallon

Expect similar “innovations” in the ways the State of Oregon takes your money if and when aggressive anti-smoking programs and legislation lead to a serious decline in the number of smokers and a concomitant decline in the revenues from sin taxes on tobacco products.

(via Slashdot)