Friday, February 20, 2009

We're From the Government and We're Here to Reach into Your Wallet

Of course, you'll never hear a government official admit that headline. They're here to help, after all, not just take more of your money. Take the transportation secretary's desire to tax the miles you drive rather than how much gasoline you consume.

Transportation Secretary Ray LaHood says he wants to consider taxing motorists based on how many miles they drive rather than how much gasoline they burn — an idea that has angered drivers in some states where it has been proposed.

Gasoline taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving, LaHood said in an interview with The Associated Press.

Back last summer when gasoline was $4 per gallon, many Americans switched out their gas-guzzlers for more fuel efficient vehicles. But if Americans weren't using as much gas, that meant the government wasn't getting as much in taxes. That was when I first heard that the government would look at ways to tax mileage as opposed to consumption (Oregon seems to be leading the way).

Rest assured, those clever fools in Washington aren't going to let you get away with paying less in taxes.

UPDATE: President Obama repudiated the idea today, but, given his history of flip-flopping, should we still be concerned?