Tax proposal means more "Smiles per Mile" ... for the oil industry

Oregon's Governor Theodore Kulongoski is studying a horrifically bad tax concept that is little more than a love-letter to Big Oil.  He wants the state to study the idea of taxing drivers for using less fuel.

We call it the "More Smiles Per Mile" tax for the oil industry, because despite claims to the contrary, this tax will ultimately reward Hummer drivers and other gas hogs by taxing vehicles based on the number of miles they travel. 

California looked at this road tax a few years ago and decided to pass. But now, according to an article in today's St. Louis Dispatch, Texas, Pennsylvania, Minnesota, and Ohio are also contemplating Big Oil's "Smiles Per Mile" tax concept.

Here's the basic idea: Instead of taxing users based on how much gas they use, the tax will be based on how many miles you travel. When you pull up to the pump, the GPS navigational system in your car will be accessed by the gas station. The pump will calculate how many miles you have traveled, and where you have traveled, and tax you accordingly.  But that's not all: You will be charged extra if you drove during rush hour, or through a congested area.

Big Oil loves the idea because it rewards wastefulness. And Big Government? Well, they'll be able to keep records on where your vehicle has traveled at all times using a government-mandated GPS locator. This is wonderful news for law-and-order types who want to see a police state where all citizens are monitored at all times.

According to an article in today's St. Louis Dispatch:

"if you want to drive a Hummer, or whatever that vehicle might be 30 years from today, at 7:30 in the morning on I-70, you're going to pay a higher rate  ..." 

"... In Oregon, Gov. Theodore Kulongoski's proposed budget calls for a task force to work out details of the plan. Eventually, GPS devices could be recording every mile driven, and possibly which routes motorists use. Motorists would pay a mileage tax at the pump in place of a gasoline tax. The state tested the concept in 2006 and 2007 with 285 volunteers and a handful of gas stations in Portland, Ore."

Although boosters of the tax say that a Honda Civic driver will pay less than a Hummer driver, the reality is that Big Oil's "Smiles Per Mile"  tax would bring a multiplicity of bad consequences.

8 good reasons why this tax is highway robbery:   
 
1) It will likely reward gas guzzlers. Right now, drivers who use more fuel pay more in taxes. A cement truck, for example, gets terrible mileage. Because it is taxed on a per gallon basis, it pays more in taxes. And a Hummer, a cement truck, or a Chevy Silverado should pay more in taxes because the weight of these vehicles does tremendous damage to the roads.

2) It punishes fuel-efficient drivers. This tax was designed by the oil industry to punish people who drive economy cars. If you're getting 50 miles per gallon because you are driving carefully, and using a light-weight fuel efficient vehicle, such as a Toyota Prius or Honda Insight, you are currently rewarded with a lower fuel bill. This tax punishes you by charging you based on the miles of road you travel. It is therefore regressive. Proponents say they will tax a Civic less, but let's face it, this tax is tailor-made by the oil industry to punish drivers and businesses that are fuel-efficient.

3) It creates a massive bureaucracy. Under the plan, each vehicle, or each class of vehicle, will be taxed differently. It will take an army of meddling bureaucrats and tax collectors to create the tax code and enforce it. And over the years different business groups will lobby for discounts and exceptions. The only people who won't get discounts or exceptions will be YOU, the voter.

4) It's a horrific invasion of privacy: Your vehicle will constantly be monitored by the government. The government will know when, and at what time, you visted your psychiatrist. It will know when, and at what time, you attended that 12-step program, or stopped at your local church to pray. They may even report this data to your insurance company, which would love to raise your rates based on driving patterns, too.

5) Working people will be punished. If you work for a living and can't afford to live close to your office, like the corporate fatcats that invented this disastrous tax, you will pay more for driving during rush hour. That's right: If you are driving your vehicle during certain hours, you will pay a higher tax.

6) It will make it impossible to compare gas prices. Under this system, you won't know what you are going to pay for gas until after you buy your gas. If the proponents of this disaster get their way, you'll pay a variable rate depending on where you've driven, and at what time you've driven.

7) It will be impossible to audit.  How do you know you are being charged fairly by the retailer or the government when you are being taxed a different rate for the number of miles you've traveled, the time you've traveled, and the locations you've visited? 

Estimating your taxes will be almost impossible without a spreadsheet. And because the taxes will be so complicated, it will make motorists and businesses vulnerable to fraud, overcharges, and abuse.

8) It replaces the gas tax. Ultimately, this proposal is designed to eliminate taxes on gasoline, by replacing them with taxes per mile.  No wonder the oil industry is smiling.

This is one road tax that should be kicked to the curb. Otherwise,  the Gas Hogs will be lining up at the government trough at your expense.