Pay-As-You Drive System Being Tested
The US Government will eventually find a way to generate even more taxes from gasoline use and this latest series of tests seems to aim exactly towards this reality. Some researchers at the University of Iowa Public Policy Center have developed a special system for charging drivers various federal taxes. All is based on the distance the individual travels and not on how much gas they purchase.We currently have 2,700 different drivers from Iowa, Texas, Maryland and California that are testing the system. Federal gas tax is currently 18.4 cents per gallon and has remained unchanged since 1993. Automobiles are also getting more efficient when it comes to fuel efficiency. This is why the US Government is not at all happy at the moment and the raw reality is that individuals are paying fewer taxes each year, taxes that are needed by the authorities.
Now there is a solution: instead of paying a fee on fuel purchased, drivers might end up having cars equipped with a taxi-like meter. Individuals will then receive a monthly bill that they have to pay, based on the number of miles traveled. The solution seems to be very good for the US Government but will probably enrage drivers. When technology gets mixed with tax paying, it is not good news for us. Who knows what will happen next? Maybe paying energy taxes based on how much time the light bulb stays on. The University of Iowa Public Policy Center researched an interesting system but that does not mean it should be used to generate more taxes from the population. In my view, this will only enrage drivers. But then again, I would love to test the system myself and see what that gadget in the picture actually does and there is always a very skim chance that we would end up paying less taxes.

Posted September 27, 2007
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