Obama Mulls Replacing Gas Tax With Hefty Mileage Tax

One reason gas prices are so high is that the Feds impose a tax of 18.4 cents per gallon on gas. It’s 24.4 cents per gallon of diesel. We’ve had federal gas taxes since the 50’s to pay for highways and bridges, but since 1983, they started diverting about 20% of gas taxes to go to a Mass Transit Account that is supposed to pay for public transportation like buses and railways. So, those of us who don’t use mass transit are paying for those that do in the form of gas taxes. That’s socialism for you.

We’ve had the 18.4-cent per gallon tax since 1993 under the Clinton administration. Nowadays, with the further destruction of the dollar, that 18.4 cents just doesn’t buy what it used to. Now, the Highway Trust Fund (which includes the Mass Transit Account) is facing insolvency.

Some credit the loss of revenue to the fact that many are using more fuel-efficient cars and therefore not spending as much on gas. Isn’t that what Obama wanted? For people to use more “green” energy? And now, the Highway Trust Fund is running out of money.

That could be part of it, but billions of the gas tax revenues are used to fund pet mass transit projects, which those who drive cars generally don’t even use.

Whatever the cause, the Obama administration is thinking of scrapping the gas tax altogether. Sounds good so far, but they’re wanting to replace the gas tax with a pay-per-mile scheme. The Washington Examiner reported:

 “The average driver pays about $96 a year in federal gas taxes, said GAO. Should the administration seek to raise the highway trust fund from $34 billion to the $78 billion needed to fix and maintain roads, that could rise to $248. Translated into a pay-per-mile plan, drivers would face a tax of 2.2 cents per mile compared to the 0.9 cents they pay now. Trucks would pay far more.”

 In the past when the Highway Trust Fund ran out of money, they would just take money from the General Revenue Fund. If the federal government has to pay for highways and bridges, maybe they should just cut spending elsewhere and use the General Revenue instead of levying such heavy taxes on Americans, a fifth of which is used to pay for things that drivers don’t even use. With the economy the way it is, and with people’s paychecks going down, now is not the time to raise even more taxes on drivers.

The federal government could at least eliminate the Mass Transit Account, which is funded by our gas taxes. Writing for Reason magazine, Tim Cavanaugh pointed out that the Mass Transit Account hasn’t convinced more people to ride public transportation even in the past 30 years:

 “According to American Public Transportation Association, Americans in 1983 took 8.2 billion transit rides. In 2008, the last year with complete statistics, we rode the bus, commuter rail, paratransit, heavy rail, light rail, trolley-bus, or “other” 10.5 billion times. The Census Bureau has 1983 U.S. population at 234 million and 2008 U.S. population at 304 million. That comes to 35 rides per American in 1983 and 34.6 rides per American in 2008. “

 If states want to have public transportation, they should raise their own revenue and pay for it themselves instead of taking federal highway funds to build it. As for paying for highways and roads, we could cut hundreds of billions of dollars from Obama’s foreign policy expenditures and put those funds toward domestic infrastructure and not have to impose one penny of gas taxes to fund it.



Posted in Bureaucrats, Taxes Tagged with: , , ,
  • iwojimafan

    Obama is now Mugabe of Zimbabwe which is now completely Broke and which Obama is now doing to America, Steal from the Producers and give to the Takers along with all his Thieving CRONIES

  • Mudpuppy

    This scam has been talked about for at least 20 years. I propose we do more than mull replacing Obama.

    People don’t use mass transportation mainly because it is inefficient and not widely available (i.e., it doesn’t cover much of the area). It also can be risky. Besides, it’s easier to drive everywhere. I used mass transit in Japan (and the rest of Asia) and Germany more often because it was efficient and covered most places I wanted to go. Still drove many times, though.

  • PaleRider

    Another stupid idea by the “idiot n chief” to rip us off yet even more.
    Time to impeach this muslim, communist pretender.

  • quarkie009

    Another one of those lies that Obama has been caught flat footed, ” I will not raise taxes on the middle class.” Raising the gas tax in one form or another WILL hurt everybody. Yet, the
    liberal usefull idiots don’t bother to check out the truth about all the lies that the marxist in chief (Obama) continues to tell. When will the people of America wakeup to the ever pesent
    danger that Obama and the democRAT pose to all Americans.

  • BigC

    I guess nobody that drives makes less than $250K/yr…he did say there would be no tax increase on those making less, right? Oh no, not ANOTHER LIE!!!!!!!!!!!

  • DEC

    That’s $220.00 per 10,000 miles

  • menjo

    Solve the problem, get rid of the mu slim squatting in Our House one way or another!
    Open the pipe line!

  • Terry

    This is just the start, next carbon tax, ammo tax,and any other tax he can dream up.

  • http://www.facebook.com/people/Linda-C-Dines/1547798249 Linda C. Dines

    If they, Congress, wouldn’t spend so much on unnecessary research, silly studies, spending in other countries which never reaches the people only the corrupt governments and anything which suddenly occurs to them, excessive pork etc. make and stick to a budget perhaps we would be able to finance those things which have been determined to be needed.

  • Mike Blackwell

    Cut all of that foreign aid, and their would be Trillions for that use.

  • Lloyd

    Does anyone see taxation without representation, or perhaps more control and invasion of privacy? The only way to effectively accomplish this is to install transmitters into the odometer of vehicles. That way they know how far you travel, and maybe with a tracking device added for “free” know “where” you go. Another right to take away.

  • TheTexasCooke

    A gasoline tax IS a mileage tax…and a tire inflation tax…and an engine tuning tax….and an efficient engine tax….and a anticompact car tax…..what idiots!

  • 2013 Watcher

    As his inaugural vehicle license tag states: Taxation without representation. King BO has spoken. Ready for the next American Revolution?

  • Irish Lad

    Anyone thinking nobama is legal should check it out. Why did nobama and his wife lose their law licenses. he was never a professor. The Kenyan ambassador says he was born
    in Kogelo, Kenya. Sign downtown commerates his birth. He is a complete scum, arrogant
    nut that thinks he is God. FAster he is gone the better

  • MusicGuy314

    More freedom lost. Drive on your vacations? Not anymore.

    • Mudpuppy

      That’s so they can funnel us through the TSA goons which they will have at every transportation facility, not just airports. Internal passports will be required.

  • tom

    looks like I will have to disconnect the speedometers.

    • Mudpuppy

      Won’t do any good. They will put a black box in there that reads it before it gets to the odometer. There will be no way to disconnect it or bypass it without sending an alarm to Gestapo/KGB headquarters.

  • jamgus24

    the mileage tax is one of the most idiotic ideas that obama and his communist administration has come up with. pretty soon they’ll have everyone urinate in a measuring cup and tax everyone on how much they pee.

  • glop

    Wouldn’t get much from me, because I don’t go very far anymore and don’t go anywhere most days.

    • Bay0Wulf

      Ahhh … yes well … except YOU will wind up paying for whatever the businesses have to pay to receive the goods that you buy … that is to say, whatever an item “costs” a business (say $1.00) the business (and EVERY real business who plans to be around) takes that $1 and does this; x3 = $3 which THEY hand on to the grocery store which does this; x3 = $9 which is what YOU get to pay on top of what you used to pay.

      This is how businesses keep their doors open (no, as much as you might think its gouging its not. Its standard business or … its a business that will soon be “Out Of Business” because they can’t make the 5 to 10% NET profit they need to make it worth getting up in the morning and paying their employees.

    • Mudpuppy

      As Bay0Wulf said, ALL taxes filter down to the consumer level. That’s you and me. You WILL be paying, just not directly so much as the cost of everything will go up in order to pay for this abomination if it sees the light of day.

  • Ron G

    We’re already paying a hefty mileage tax. It’s called Air Force One. For a person who wanted to be president, he sure seems to hate his office in Washington DC. But then he seems to hate the constitution, bill of rights and the American people.

  • theronald

    Mileage tax instead of gasoline tax? That might be fine for an old retired dude like me who drives less than 50 miles a week. But, the worst part about a mileage tax is that the gov’t would have to have assess to our odometers. How’s that for intrusion into our lives?

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