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Robin Chase

Robin Chase

Posted February 26, 2009 | 10:54 AM (EST)

Tax for Driving? An Economic Engine


Let's spin some straw into gold. There is a hunger in the Whitehouse and state houses, on Wall Street and Main Streets for something, anything, to turn our financial distress and disappearing budgets into a future that restores hope, prosperity and confidence in government. I see the shimmering gold that keeps getting mistaken for impractical straw. You just have to get the right angle to the light.

The glimmer lasted only a few hours when late last week the AP reported that Transportation Secretary, Ray LaHood said: ''We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled'' as a substitute for the gas tax.

But within hours of its first report, transportation department spokeswoman Lori Irving declared: "The policy of taxing motorists based on how many miles they have traveled is not and will not be Obama administration policy." And later this sentiment was reiterated later by President Obama's own Press Secretary Robert Gibbs: "It is not and will not be the policy of the Obama administration.''

And that shimmering straw was thrown back into its dark policy-wonk corner again. But hold on. Let's re-examine the implications of paying for roads by the mile rather than by the gallon.

Point zero (not a point for this story but we need to put it behind us so that you can focus): your locational privacy as you drive can be protected. Really. We can deliver on that so put it out of your mind.

Point number one: if we follow through with the Economic Stimulus Bill just signed, state and federal governments are going to be replacing a whole bunch of old fuel-inefficient cars with fuel efficient ones, quickly if they follow the promised timetable. And then the rest of us are supposed to be replacing ours similarly, if the car companies and the EPA follow through with their recent promises. And so begins the inexorable melting of the tried and trusty gas-tax that finances our transportation infrastructure. Inadequate gas taxes, inadequate infrastructure.

Secondly, a VMT tax requires technology. And because cars and roads go everywhere, so too will this technology need to be everywhere. And therein lies the gold!

Unless you are a communications industry nerd, you'll have missed a very short and far-sighted clause in the Economic Recovery Bill: smart-grid demonstrations projects - 50% of which will be financed by us, the taxpayers -- must "utilize open protocols and standards (including Internet-based protocols and standards) if available and appropriate."

Imagine if the VMT technology applied this same language. Instead of having a single purposed transponder in every car, you'd have a device that could communicate and interact with the also ubiquitous and also everywhere smart grid. Are you beginning to see the shine?

Imagine further, that at your own option, and thanks to the genius of the private sector, this device would be much like any smart phone or laptop. You could download any number of applications. In fact, you might consider this VMT infrastructure -- end user financed because we want to pick our own devices to suit our own needs -- to be the nub of a mobile internet.

And like the Internet, it is a network, routing data over cars, through smart grids, and throughout our environment, in a dynamic decentralized way. A network owned by no one, but powered by all of us. Just like the Internet.

And just like the Internet -- remember the glow emanating from the late 90s? -- this will be an economic engine like no other. Is this a fantasy? The military is using just this technology to connect people, tanks, and planes in a decentralized robust and secure network in Iraq right this minute.

What did our last President say? Bring it on! Bring on that VMT tax! But make it shimmer, turn it into real gold by requiring open standards, Internet protocols and opening up excess network capacity that is funded with our tax dollars. No, it won't happen overnight. That only happens in fairytales.


Robin Chase is a transportation entrepreneur, founder of Zipcar, GoLoco, and Meadow Networks.

Let's spin some straw into gold. There is a hunger in the Whitehouse and state houses, on Wall Street and Main Streets for something, anything, to turn our financial distress and disappearing budgets ...
Let's spin some straw into gold. There is a hunger in the Whitehouse and state houses, on Wall Street and Main Streets for something, anything, to turn our financial distress and disappearing budgets ...
 
 
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10:43 PM on 02/28/2009
I don't like it, one more attachment to the system.
08:52 PM on 02/28/2009
What is the difference in taxing miles versus a gas tax?

People that drive more miles already pay more in gas taxes . . .

I guess they want that GPS system tracking on your car.
09:46 PM on 02/28/2009
The difference is that if my car gets 10 miles to the gallon, and your car gets 20, you've been paying half the tax I have been paying by using half the amount of gas.

If we switch to miles traveled, my tax bill will go down, and yours will go up, to match mine, so you too have financial incentive to drive a big gas guzzler like mine.

Caveat: I do not actually drive a big gas guzzler, I like paying less tax than a big gas guzzler, won't be happy at all if they take it away from me...
06:41 PM on 02/28/2009
PLEASE tell me your paean to never leaving home without Big Brother riding shotgun is a parody! Surely it is. Gotta be. You can't be bloody serious.

Besides putting our present police state on steroids, we'd be quashing all the benefit of using more efficient vehicles. It would be also highly regressive in placing higher taxes on those forced, for economic reasons, to live farther from where they work -- not to mention the unfortunates who now have to gallivant among several workplaces to survive.

Sure, it would be great to get more vehicles off the roads, but we have no effective public transport beyond a few major cities, so driving isn't an option to be discouraged; it's the only way to get around.
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LindaWarnke
Too Big to Fail/Jail is a NATIONAL SECURITY THREAT
01:08 PM on 02/27/2009
A surcharge for miles driven? I don't THINK so! As another poster said, I WILL remove or disable any such device.
I drive 45 miles each way to work. That is 90 miles a day. Now, if they figure a way to tax me on those miles (without the device, which will be either in my garbage or in pieces) then the next tax return I file WILL have every single mile deducted at whatever the going rate is.
AND I will switch over to an off-the-books position (easy to find in my field), and government will get NOTHING.
So, you can take your little device, and stick it where the sun don't shine. As far as I'm concerned, get out of my face, and get out of my pocket!
Why don't you tech companies work on stuff we actually NEED, instead of using your considerable resources to figure out new and more creative ways to rip us off?
12:53 PM on 02/27/2009
I HATE this idea. It's AWFUL. It removes the incentive to purchase fuel-efficient or alternative-fuel vehicles, adds cost and complexity to new vehicles, and service providers such as OnStar, XM/Sirius, and countless GPS navigation providers have successfully created an automotive networking market without public subsidies.

If we needed to put satellites into orbit, I could understand public investment. But consumers can bear the cost of vehicle-mounted communications equipment as an OPTIONAL out-of-pocket expense. Not everybody wants their car to interact with social networking applications, especially if the government maintains a backdoor for the purposes of tax collection...
12:48 PM on 02/27/2009
Just tax the fuel like we do now.

Taxing the miles removes the incentive for fuel efficiency!
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WIpatriot
I've seen enough to make me Progressive
06:26 PM on 02/27/2009
Exactly. Don't penalize fuel efficiency.
10:23 PM on 02/28/2009
All agreed, this is a bad idea, although that still leaves the question, if the highway system is supported by gas taxes, and gas tax revenues keep on going down because of increasing fuel efficiencies, and then some drivers start to switch to something like an electric car and pay no gas tax at all, how to pay for the highways?

This is a bad idea, but, how to pay for the highways?
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10:53 AM on 02/27/2009
really a tax on pollution.....the oil companies just pass their pollution costs on to the consumer so the government will just collect the tax from consumers upfront.....
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WorkingClass
10:32 AM on 02/27/2009
With luck I will turn 65 this year. I guess you have to be that old to remember when "liberty" was high on the list of American values. I never hear anyone talk about freedom anymore. The government is already listening to my phone calls, I guess they might as well track my movements as well. Sigh. I wish I had been born even earlier.
01:06 PM on 02/27/2009
You have absolutely no grounds to complain about being an early baby boomer. Your generation of Americans enjoyed the most broadly prosperous youth and young adulthood of any generation of the past and quite likely of the future as well. You lucked out big time, and your contemporaries precipitated the various and sundry crises we face today.
06:21 PM on 02/28/2009
Reading between the lines, here, it seems you just might like the idea of Big Brother tracking your daily activities. You've nothing to hide, right? Well, some of us think folks like you need to spend some time in China, Russia, Zimbabwe.
06:48 PM on 02/28/2009
Boy, are you wrong! The World War II generation, the Boomers' parents and older siblings, are the last folks who could count on a middle-class income, real pensions, affordable health care, etc. Real living standards peaked in the USA in the late '60s. It's been downhill for all of us since then.
11:17 PM on 02/28/2009
I believe there was a major speech devoted to the concepts of liberty that was just given today, as a matter of fact. Might wanna go watch it for yourself.
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Newbie71
09:36 PM on 02/26/2009
I can see this approach to raising tax revenue re-invigorating the marketplace for the horse and buggy. I'm dusting off an old business plan for a Buggy Whip company as I write this.
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06:23 PM on 02/26/2009
So, we should put together an infrastructure to charge people how many miles they drive so that we don't have an ugly gasoline tax, and so that we can create jobs with all this nifty-neato technology?

Economically, how is that different from hiring people to dig holes and then fill them up?

We have used a gasoline tax in the past as a way to fund highways because it seemed a fair approximation of a usage fee. These days, when the amount of CO2 is of concern, it is a direct measure of how much CO2 an automobile puts into the atmosphere.

And it's dead-brain simple.

So why replace it (or even augment it) with a boondoggle of a direct measurement of miles traveled? How is that even fair, when the load a subcompact puts on the road is different than that of a hummer?

A combination of gasoline taxes and vehicle registration (fees by axle and by weight) provide an good means for paying for highway maintenance and construction, and the environmental impact of CO2 production. Whether they're raised or not (I favor raising them for a variety of reasons), they are efficient and effective.

This proposal is make work that serves no added benefit over the existing methods.
10:27 PM on 02/26/2009
No added benefit? The benefits ae obvious. Government not only gets to take more money, they also get the bonus of invading your privacy that much more. There is plenty of benefit. You just didn't realize for who.
01:27 AM on 02/27/2009
Oh, wait. The article was saying my car will have a tracking device to follow my every move, and this will be okay because, "...your locational privacy as you drive can be protected." Give me a break. Your locational privacy cannot be protected even when your not wearing a tracking device.
01:16 AM on 02/27/2009
The wear and tear from a Hummer is not even noticeable. When highway departments measure traffic on a road, they only measure the number of big rigs, because they are the only vehicles that cause measurable deterioration to the road. The rest of the deterioration is due to natural elements.

Anyway, I agree the gas tax is the best way to go. If they are measuring mileage, are they going to spot check vehicles along the highway to make sure odometer cables haven't been disconnected?
05:58 PM on 02/26/2009
I do not agree with the per mile thing as it kills the incentive for purchasing fuel efficient cars.
04:51 PM on 02/26/2009
Before everyone jump all over me, I don't really see what is wrong with it. If you drive more, and let out more CO2, then why shouldn't you pay more? If you are a big corporation and let out a ton of pollution, you have to pay for it. I don't see much of a difference. If I drive little and bike to work, then my carbon foot print is smaller. I don't really see any kind of positive change of reversing global warming, unless you make people pay for their lifestyle. Scientists are coming back saying we need to make steeper cuts and do them sooner, then before. So why have a co2 tax on cars?
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texastrixie
I invented the internet.
01:04 AM on 02/27/2009
Because the idea is to get us all to drive electic cars as much as possible - no CO2.
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vippy
Carpe Diem!
10:07 AM on 02/27/2009
Oh baloney, Obama is bringing up the 14% ethanol in gas, which is even worse for the environment and wrecks all engines and that will be expensive. Obama has promised a 600% increase in ethanol during his campaign. He owes ADM I believe.
04:12 PM on 02/26/2009
This infrastructure financing mechanism (how do we pay for roads, bridges, and public transport) is precisely what is recommended in the recently released National Surface Transportation Infrastructure Financing Commission report http://FinanceCommission.dot.gov/Documents/NSTIF_Commission_Final_Report_Advance%20Copy_Feb09.pdf

Robin is suggesting is that we implement the infrastructure financing mechanism in a way that has side benefits even bigger than just the fair and rational financing. How can anyone argue with that?
03:39 PM on 02/26/2009
I will remove and destroy any such transponder in a car I buy.
07:56 PM on 02/26/2009
They will immediately come with three black helicopters, zap you with a giant taser, take a DNA sample and then abduct you to a no-torture government facility where you will have to write a thousand times a day

"I will not destroy government property!"

with chalk on a screeching black board.

:-)
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dan-o
03:22 PM on 02/26/2009
The device will have to differentiate between jurisdictions so IT WILL BE ABLE TO TRACK YOUR MOVEMENTS!!! We are already losing individual rights and the government and corporate are trying to push us further down that road. No way on tracking our vehicles. I have never been a conspiracy nut or one of the militia types but if they keep pushing- Viva la Revolution!!!!
01:38 AM on 02/27/2009
Any rights that can be abused, will be abused.