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New DMV Head Advocates Tax On MilesDriven
The KCRA Channel ^ | November 16, 2004 | staff

Posted on 11/22/2004 4:26:38 PM PST by absalom01

New DMV Head Advocates Tax On Miles Driven

Joan Borucki Is Veteran Of State Transportation Programs

POSTED: 10:16 am PST November 16, 2004
UPDATED: 6:19 pm PST November 16, 2004
SACRAMENTO, Calif. -- Tired of high gas prices? Right now, drivers are paying a tax of 18 cents for every gallon of gas bought. The new chief of the state Department of Motor Vehicles has an idea that would wipe out the gas tax, but at what cost?


Gov. Arnold Schwarzenegger's newly appointed director of the DMV, Joan Borucki, wants to charge people for every mile they drive.Schwarzenegger said Tuesday that the idea has yet to receive in-depth consideration, but talk of a "mileage tax" is causing a political commotion.Honda dealer Katina Rapton says that the idea of an "mileage tax" is crazy, and that California already requires the manufacture and sale of clean-burning, fuel-efficient cars, which cost consumers more to drive off the lot."To me it doesn't make much sense," Rapton said. "And then turn around and penalize them on the backside for using their cars and getting better gas mileage? It doesn't make much sense."The mileage could be tracked with a device placed in the car. It's an idea that Borucki included in the governor's recently completed California Performance Review. The idea is echoed by transportation planners.
"We have to go to another device because we can't continue to rely on the gas tax in its current form, because we're using less gasoline as the price of gas goes up," said Mineta Transportation Institute spokesman Rod Diridon Sr.But Schwarzenegger, who was in Stockton Tuesday, was talking cautiously."I know the idea that has been talked about. But I don't know exactly what that would mean and what effect it would have exactly. So, I want to think it through before I make a commitment on that," Schwarzenegger said.The idea could be politically explosive for the governor who was elected, in part, on his pledge to roll back the state's car tax.Highly fuel-efficient cars like the Honda Civic would be most dramatically impacted if the idea goes forward because the driver would be charged for the miles driven, not the gas consumed.


TOPICS: Business/Economy; Culture/Society; Government; US: California
KEYWORDS: borucki; california; dmv; mileagetax; taxes
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To: B Knotts

"The problem is that even people who would be willing to pay an increased gas tax aren't convinced that any increase would actually go to building and maintaining roads. Instead, they rightly fear that much of it would be used to build bike lanes and light rail boondoggles"

Sheesh, you still aren't thinking like a bureaucrat! All tax revenues, whether "earmarked" or not go into the general fund either directly or indirectly. This is true for all gov't everywhere. There are no exceptions.

money is then doled out to whatever constituencies the gov't deems worthy.

It's about the green alright.....the cash green.


41 posted on 11/22/2004 4:55:40 PM PST by RFEngineer
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To: Michael Barnes
jailarity will ensue..

Correction, a manual on how to repair you speedometer

42 posted on 11/22/2004 4:55:56 PM PST by fritzz (A good plan vigorously executed now is far better than a perfect plan executed next week - Patton)
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To: fritzz

Just unscrew the cable from the back. I have a 1993 truck for sale, it only has 18 miles on it. Going for a real good price! 8-)


43 posted on 11/22/2004 4:56:40 PM PST by Normal4me
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To: fritzz
Correction, a manual on how to repair you speedometer

HAHA....now your thinking!

44 posted on 11/22/2004 4:58:38 PM PST by Michael Barnes
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To: Normal4me

LOL, The new stuff isn't that easy.


45 posted on 11/22/2004 4:58:38 PM PST by fritzz (A good plan vigorously executed now is far better than a perfect plan executed next week - Patton)
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To: Michael Barnes; fritzz

That, and this proposal is even more insidious -- the system does not rely on odometers (partly for the reason that fritzz identifies), but on a GPS device in the car. The tax authority can track WHERE and WHEN you are driving. Of course, this information wouldn't be kept on file, and would only be aggregated for tax purposes blah blah blah.

There is an upside -- you wouldn't have to buy a Lojack -- the cops could just use the gps on board you car. If your teenage kid is missing at 4:00 AM, maybe you could track the car and make sure she's safe (before you ground her for life).

Of course, there's the potential for abuse.


46 posted on 11/22/2004 4:59:45 PM PST by absalom01
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To: ThinkDifferent
This idea, while "idiotic" on its face, is based on a very rational premise: When something is free -- or perceived to be free -- it will always tend to be used to excess. That's exactly why nobody in California bothered to conserve energy even as the state was facing massive power shortages a few years ago -- none of the customers had an incentive to limit their energy consumption because the price they were paying for their energy did not reflect the scarcity of it.

The same holds true for public thoroughfares such as highways and streets. There is definitely a "cost" associated with using these facilities, and a substantial amount of the cost is often paid through fuel taxes. The problem, though, is that the user does not pay an incremental cost that accurately reflects his use of the system; he has no clear financial incentive to vary his travel times and/or routes in response to variations in demand. In that sense, the motorist is similar to a customer in a restaurant with an all-you-can-eat menu. The restaurant will always make sure its prices are high enough to cover their costs, but once a customer has paid for his meal he has no incentive to stop eating because there is no incremental cost associated with each additional trip to the serving line. The natural end result is a customer base of obese people.

In an ideal situation, vehicle traffic would operate in a manner similar to electric and gas utilities, in which motorists pay more to travel during peak periods and/or on fast routes. The roadway system doesn't even have to be operated by a government entity; a number of states have experimented with privately-owned toll roads (parallel to "free" roads) that provide superior travel conditions to motorists who are willing to pay a price for it.

47 posted on 11/22/2004 4:59:47 PM PST by Alberta's Child (If whiskey was his mistress, his true love was the West . . .)
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To: Normal4me

don't know 'bout your state, but in Ca. one used to be able to file for a refund for "non-highway" fuel tax - just save appropriate receipts


48 posted on 11/22/2004 5:00:08 PM PST by TheOracleAtLilac
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To: kellynla
HA.......the Euroweenies tried this in Germany....but just for trucks (lorries) ...it was a BIG FIASCO....the German government spent Billions in infrastructure, computers and gadgets in trucks....but guess what...

It didn't work.

They also lost a ton of money in non-collected truck taxes since the old method was abandoned.

49 posted on 11/22/2004 5:00:39 PM PST by spokeshave (Strategery + Schardenfreude = Stratenschardenfreudery)
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To: AVNevis
"It gives out of state travelers a free ride on California roads" and your choice of tag
50 posted on 11/22/2004 5:00:45 PM PST by seastay
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To: absalom01
"I know the idea that has been talked about. But I don't know exactly what that would mean and what effect it would have exactly. So, I want to think it through before I make a commitment on that," Schwarzenegger said.

What's there to think about? The minute this idea came up, Schwarzenegger's response should have been simple:


51 posted on 11/22/2004 5:00:50 PM PST by Anti-MSM (Conservatives wish 9-11 never happened. Liberals pretend it didn't happen.)
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To: fritzz

Heh...My old truck has on of them 'puters in it. It's a 286 with 2 meg of ram, but it's got one! 8-P


52 posted on 11/22/2004 5:01:22 PM PST by Normal4me
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To: Alberta's Child

But if these public goods are going to be sold as a product like any other, shouldn't they cease to be publicly owned?


53 posted on 11/22/2004 5:01:53 PM PST by B Knotts
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To: absalom01

The gas tax is a milage tax....the idiot!!


54 posted on 11/22/2004 5:03:04 PM PST by mlmr (Rubbing it in Leftist faces since 1994)
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To: B Knotts
None of these Big Brother advocates has explained why the gas tax can't simply be raised, if they predict shortfalls.

PLEASE don't suggest that, they may see your post. In CA gas taxes are over $.50 a gallon already, with 10% of the nations vehicles I think they're already collecting plenty of taxes, they just haven't used it for that which was intended.

55 posted on 11/22/2004 5:04:54 PM PST by Mister Baredog ((DO IT NOW, if you haven't put up a flag on your FR homepage yet,PLEASE))
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To: B Knotts
Instead, they rightly fear that much of it would be used to build bike lanes and light rail boondoggles.

And rightly so. Democrats tend to be interested only in transit projects which go to the blue cities and keep their constituents happy.

But the truth is that we have thousands of bridges in this country that were built over 60 years ago, and they're worn out. We can all debate where funding their repair or restoration should come from, but it does have to be done or the consequences will be grim.

I don't think the per mile idea is a good one because it will have unintended consequences. But funding these projects is one of the few things the government SHOULD do.

56 posted on 11/22/2004 5:05:23 PM PST by Dog Gone
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To: B Knotts

When you describe a "public good," are you referring to a roadway system?


57 posted on 11/22/2004 5:05:31 PM PST by Alberta's Child (If whiskey was his mistress, his true love was the West . . .)
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Comment #58 Removed by Moderator

To: absalom01

This is just another excuse to prove the "need" for the black boxes to track you movement. If they just wanted more money, they could bump two cents per gallon and pay .20 like Texans.


59 posted on 11/22/2004 5:10:07 PM PST by SouthTexas
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To: absalom01

Do they not already have a gas tax implemented? I don't know, but I'd find it hard to believe if they didn't.

If they do, then they already have imposed a tax on 'miles driven.'


60 posted on 11/22/2004 5:11:46 PM PST by Ghost of Philip Marlowe (I'm fresh out of tags. I'll pick some up tomorrow.)
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