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New Way to Tax Drivers

If you live in California you may dislike the current 18 cent a gallon gas tax. But would you still dislike it if the California government opted to tax you for each mile you drive instead? The revenues from gas taxes in California could fall if people continue to purchase hybrids and better mileage vehicles, so the government is looking into options to collect more revenues. KESQ News Channel 3 reports that, "Under the plan, the state's current 18 cent a gallon gas tax would be replaced with a tax on every mile you drive. Global positioning satellites and sensors on your car would keep tabs on exactly where and how far you travel. Privacy advocates say tracking drivers would be like big brother sitting in the back seat of your car, keeping tabs on everywhere you go. Others say it's a disincentive for people to buy hybrids and other more fuel efficient vehicles because any current tax savings would be eliminated." People who drive all day because of their work and people with long commutes (common in California) could also be negatively impacted by a change from a gallon gas tax to a mileage tax.

Posted on March 7, 2005





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