Quote:
Originally Posted by BroadHopper
State and Federal governments are tackling the problem of lost revenue as gas usage declines, especially EVs. Most of the road use taxes are tied to gasoline purchases. One thing they are doing is increasing license fees. But that is not the solution.
There are all kinds of solutions, but one can argue that one is not the best.
The best solution is a form of VAT on vehicle purchase as well as on maintenance and fuel, both fossil and electric. The other is a mileage tax, but how would the tax collectors know how much mileage you put on?
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When you get your annual inspection they collect odometer readings. Unfair to the little old lady who only drives to church and never uses state roads and a huge lump sum due at registration is hard to pay for some. You could pay quarterly, but that entails huge administrative costs.
Everything you and I can think of was discussed in some state legislature years ago. Nothing is as easy to pay and to collect as the current gas tax. Charging extra registration for EV's would be fun, but just think of the screaming involved from EV owners. Whew!.
I understand in states with a sales tax, the sales tax can be rolled into the purchase price and you finance it. Wow! Borrowing to pay taxes.
California will do something crazy and the other sates will do something only half crazy and we'll all breathe a sigh of relief at bein g only half crazy.