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Thread: Change highway trust fund financial base?

  1. #1
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    Change highway trust fund financial base?

    There was an article in the paper the other day about how the highway trust fund is drying up because people are buying more fuel-efficient cars like hybrids and biodiesel, and in the future, hydrogen-powered cars (the money for the fund comes mostly from fuel taxes).

    In order to make up the shortfall, the govt. is looking to change the basis for funding the trust fund from being based on fuel consumption to being based on the number of miles you drive each year.

    The current idea to measure this is to mandate a GPS unit to be installed in each car that is readable via the OBD port.

    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

  2. #2
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    Re: Change highway trust fund financial base?

    Quote Originally Posted by chiph
    There was an article in the paper the other day about how the highway trust fund is drying up because people are buying more fuel-efficient cars like hybrids and biodiesel, and in the future, hydrogen-powered cars (the money for the fund comes mostly from fuel taxes).

    Chip H.
    I believe that MB alluded to fuel taxes in an earlier and I agree with him.

    Some 15~20 years ago, I casually knew a pol from the 'southern tier' of NYS which a both poor and rural, the people needing a car top do anything. NYS was putting in a 5 cent state tax increase on gasoline. His position was that his people (I have no idea of party affiliation) would be seriously hurt by the increase.

    What happened? The increase went through a all went to the general fund, nary a drop to. A year or two ago, the sleaxe b alls figured that enough people had forgotten the incident, and another dedicated highway tax bill was approved in a general election.

    NYS also has the regular sales tax on gas which, being a percentage, is a tax on tax.

    An electorate stupid enough to put up with that, deserves what it gets.

  3. #3
    Vulture of The Western World Eric's Avatar
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    Re: Change highway trust fund financial base?

    Quote Originally Posted by chiph
    There was an article in the paper the other day about how the highway trust fund is drying up because people are buying more fuel-efficient cars like hybrids and biodiesel, and in the future, hydrogen-powered cars (the money for the fund comes mostly from fuel taxes).

    In order to make up the shortfall, the govt. is looking to change the basis for funding the trust fund from being based on fuel consumption to being based on the number of miles you drive each year.

    The current idea to measure this is to mandate a GPS unit to be installed in each car that is readable via the OBD port.

    Chip H.
    Frightening.. not so much because of the tax but because the SOBs would then be able to track our every move, in real time, too.

  4. #4
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    Re: Change highway trust fund financial base?

    Quote Originally Posted by Eric
    Quote Originally Posted by chiph
    There was an article in the paper the other day about how the highway trust fund is drying up because people are buying more fuel-efficient cars like hybrids and biodiesel, and in the future, hydrogen-powered cars (the money for the fund comes mostly from fuel taxes).

    In order to make up the shortfall, the govt. is looking to change the basis for funding the trust fund from being based on fuel consumption to being based on the number of miles you drive each year.

    The current idea to measure this is to mandate a GPS unit to be installed in each car that is readable via the OBD port.

    Chip H.
    Frightening.. not so much because of the tax but because the SOBs would then be able to track our every move, in real time, too.
    MB can give information on this, I think trucks have to record mileage in each state for tax purposes.

  5. #5
    Vulture of The Western World Eric's Avatar
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    Re: Change highway trust fund financial base?

    Quote Originally Posted by jdm
    Quote Originally Posted by Eric
    Quote Originally Posted by chiph
    There was an article in the paper the other day about how the highway trust fund is drying up because people are buying more fuel-efficient cars like hybrids and biodiesel, and in the future, hydrogen-powered cars (the money for the fund comes mostly from fuel taxes).

    In order to make up the shortfall, the govt. is looking to change the basis for funding the trust fund from being based on fuel consumption to being based on the number of miles you drive each year.

    The current idea to measure this is to mandate a GPS unit to be installed in each car that is readable via the OBD port.

    Chip H.
    Frightening.. not so much because of the tax but because the SOBs would then be able to track our every move, in real time, too.
    MB can give information on this, I think trucks have to record mileage in each state for tax purposes.
    It's stuff like this that is making me a proto revolutionary; they are pushing our backs to the wall...

  6. #6
    mrblanche
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    Re: Change highway trust fund financial base?

    Quote Originally Posted by jdm
    MB can give information on this, I think trucks have to record mileage in each state for tax purposes.
    This is true. It used to be a lot more complicated. You had to buy a "fuel tax stamp" in every state and put it on what used to be called a "bingo card." It had a space for every state, so when you entered the state, you had to stop at the port of entry and show them that you had bought the permit. Only a few states still do this: New Mexico, Oregon, New York are the states that stand out in my mind.

    At the end of each quarter, you had to report how many miles you had traveled in each state, and how much fuel tax you had paid in each state. If you had bought too much fuel in one state, you could apply for a refund. If you had underpaid, you had to send in a check.

    All the states are members now of IFTA, the International Fuel Tax...uh, Alliance, or some such thing. You report all your miles and fuel purchases to that association, and they apportion the payments to each state. You are still responsible for paying the fuel tax in each state, based your fuel mileage. Oregon is one of the exceptions, where you must pay a huge amount per mile, something like 13 cents. Most states are down in the 3-5 cent range.

    States with a very high fuel tax usually find their revenues falling off. When Colorado became the highest fuel tax in the country, their revenues dropped because it's not that much farther to go through Wyoming or across I-40 and bypass the state.

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