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require training to use it? Would it be accurate and reliable? Could it be cheated readily? If the tax were imposed at the state level, what about drivers coming in from other states? T e traditional fuel tax is an inexpensive tax to administer; a VMT, we believe, could not be. While technology is certainly capable


of tracking vehicles and producing mileage records, is its use in the administration of a VMT at all feasible politically? In the wake of the recent disclosures about the NSA and allegations of misuse of taxpayer information by the IRS, one must doubt it – particularly as IRS would presumably be called on to administer any federal VMT. At the very least, the use of technology in this respect would be highly unpopular. How about equity? Although it appears


on the surface that a VMT would treat alike all those traveling a given distance, the prospect of widespread evasion of


the tax means that those who choose to pay it or can’t avoid it, are penalized with having to pay the share of those who don’t. Moreover, while under a fuel tax regime low-mileage vehicles that emit relatively more greenhouse gases are taxed more heavily, under a VMT gas-guzzler and hybrid are taxed alike. T e very concept of a VMT seems


highly problematic, as far as cost, collectibility, equity, and intrusiveness. A VMT at the state level would raise so many questions about interstate traffi c that it may not be feasible at all, while the administration of a federal VMT would touch nearly every U.S. citizen of driving age and be almost as immense an undertaking as the income tax. But there’s no need for any government


to implement a VMT, let alone rush to do so. T e fuel tax is not obsolete and could, imposed at appropriate rates, continue for many years to raise its share of funds for highway construction and maintenance.


Besides, the fuel tax has never been the sole source of highway funding. At the local level, property taxes bear most of those costs and, at the state level, vehicle registration fees and targeted sales tax revenues serve the same function. Toward the longer term, government


should carefully study all transportation- funding options. We’ve pointed out here some failings of the VMT as currently envisioned, but a more narrowly focused mileage tax may have a place in a funding regime employing a mix of taxing methods. In particular, states should recognize the vast experience of tax administration to be found in their tax agencies, and employ it to inform transportation-funding studies. Fortunately, given the continued viability of the fuel tax, and other elements of the current highway-funding system, government probably has well more than a decade to ponder and to experiment – carefully – with alternatives. TTN


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