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Be afraid. Be very afraid.


The idea of a pay-per-mile federal driving tax appears to be gaining ground, despite White House opposition. Without a groundswell of public outrage to tamp it down it could spread through Congress quicker than an outbreak of swine flu.


The chairman of the House Transportation Committee, where a bill to impose such a tariff would ultimately be considered, said this week he thinks Congress needs to quit studying and start acting on a proposal to charge us for every mile we drive.


The idea behind the tax is to raise money for the federal highway fund, which now is dependent on revenue from federal gasoline and diesel fuel taxes.


In the absence of a fuel tax hike, that revenue stream has been shrinking rather dramatically as our vehicles' fuel economy has increased and gasoline purchases have fallen as more of us stay home to conserve funds in the midst of a raging global recession.


Congress historically has been too cowardly to raise the federal gas tax, but some - including Transportation Committee Chairman James Oberstar, a Minnesota Democrat - think a mileage-based tax would work.


"It's going to have to be done," he said during a committee meeting earlier this week, "it's something we have to do [so] why not just move ahead...I am at a point of impatience with more studies."
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Tags: Fuel Economy, Legislation, Opinion, Tax Incentives, Driving Tax, Fuel Tax, Gas Tax, Pay Per Mile Tax, Vehicle MileageTax, VMT

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Pay-Per-Mile Driving Tax Wins Support of House Transportation Chairman was originally published by Green Car Advisor. Read the full story by clicking here.