States' Proposed Mileage Tax Explained - please read! - Sample Letter

 

August 8, 2012   States’ Proposed Mileage Tax Another Government Idea that Won't Work ... or Another Incentive NOT to Work? by George Lambert If you’re a Beatles fan, you likely know the classic song, “Taxman.” It was recorded in 1966. And I’ll bet those four young men from England had no idea how right they were. Lyrics include: “If you drive a car, I’ll tax the street If you try to sit, I’ll tax your seat If you get too cold, I’ll tax the heat If you try to walk, I’ll tax your feet.” Government is trying to take it to the next level because they have a big problem: Fuel efficiency on motor vehicles has improved over the past few years. For instance, for light-duty vehicles it went from 16 mpg in 1980 to 23.8 mpg in 2009 — numbers that will improve even more, thanks to government mandates. That’s a good thing, right? It gives you more money to spend on something else or invest for your kids’ education or your retirement. But it’s not a good thing for states depending on their fuel tax to help maintain bridges and roads. That’s because less fuel bought means less money for them. According to the U.S. Energy Information Administration, as of February 2012, the excise tax on retail gasoline and diesel fuel, in cents per gallon, is:   Gasoline Diesel Federal 18.40 24.40 Average All States 22.68 23.18 You can find your state’s tax here. In California, for example, the gasoline tax is a whopping 35.7 cents per gallon. If you have a 17-gallon fuel tank, that comes out to $6.07 for the Golden State each time you fill up. And California isn’t the highest. That distinction goes to Washington at 37.5 cents per gallon. No breaks for “gasohol” (90% gas and 10% ethanol) users, either. When you think about all the cars on the road, we’re talking boatloads of money over the course of a year. That’s why states that are feeling the pinch of dropping fuel sales are looking for ways to replace this lost income. And a handful are considering attaching GPS tracking devices to motorists’ vehicles to track and tax miles driven. The list includes: California, the most-indebted U.S. state. Both Minnesota and Oregon are considering implementing a similar setup, which USA Today reports are already in the testing phase. Nevada and Washington are also looking at comparable arrangements. Florida is considering a tax-per-mile-driven approach. Is this another invasion of our privacy? Sure is. Why should Big Brother know how many miles I drive? And I have more concerns, too: If you drive to work, you’ll pay the tax. If you don’t work, no tax. So this boils down to a tax on workers ... thus, another government incentive not to work! Once other states catch on to how much money can be made, will Washington enact a federal mileage tax? If your state’s elected officials have proposed a mileage tax, contact your Governor and Legislators right now. Let them know they should be looking for ways to cut waste ... not looking for more ways to pick citizens’ pockets. (Feel free to use the sample letter I’ve drafted up for you on our website — and personalize it to let them to take a hike ... and not another tax hike!) Municipalities might belly up to the trough as well. In fact, they already are! San Francisco Bay Area residents could be the guinea pigs. Will truckers be the next to get hit up? Look out then ... because that’s when you’ll see everything you eat, drink and wear shoot up in price. What if you drive to another state? Who will get the gas-mileage tax revenue? Will you have to fill out a “mileage tax” return? And what will happen to the existing fuel tax? Will the mileage tax replace it? That might sound good in a political speech, but face it ... most bureaucrats never saw a tax or a government program they didn’t like. And even if such a proposal hasn’t been made yet, don’t let them off the hook. Tell them you sure don’t need another tax with more big government riding in your backseat.

__._,_.___