State governments are turning to various forms of taxation, such as new taxes on gasoline and cigarettes, increased property tax rates, and “sin” taxes on products or services considered unhealthy or undesirable, in order to raise revenue. They have also adopted income tax increases to fund government programs and services.
Additionally, state and federal governments are looking at new ways to fund transportation, such as mileage-based user fees, vehicle miles traveled fees, road user charges, or highway use fees, which would involve drivers paying a tax for each mile traveled. This is causing frustration among drivers, as they feel taxed enough already and have concerns about privacy with mileage tracking.
The Eastern Transportation Coalition, a partnership of 17 states and Washington D.C., is one organization that has spoken up on this issue in order to create greater safety and efficiency for all modes of transportation. Member states in the coalition include Alabama, Connecticut, Delaware, Florida, Georgia, Kentucky, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Tennessee, Vermont, and Virginia.
Unfortunately, the traditional gas tax revenues are declining due to inflation since 1993 and this is causing some serious concerns about how transportation systems will be funded going forward – especially when it comes to fuel-efficient vehicles getting 25 miles per gallon or more who are now required to pay an additional fee in certain states such as Virginia and Utah. In fact, in Oregon it’s even worse with registration fees based on fuel efficiency so that those driving more efficient vehicles have to pay higher rates than those with less efficient ones.
It’s hard not to feel frustrated by these taxes as they don’t give us much choice; drivers must pay them no matter what their opinion may be. Studies conducted by the Eastern Transportation Coalition have found that drivers initially express worry about privacy when it comes to mileage tracking, but these fears tend to decrease over time once they become involved in the program.
These kinds of fees can be difficult conversations as everyone likes using their transportation, but nobody wants to have to pay for it. It’s also understandable why many people would be resistant due to concerns about privacy as well as an aversion to paying taxes altogether. Even if third parties were implemented instead of government control, there would still remain worries about personal data being compromised which could lead to further conflicts down the line.