Monday, February 4, 2013

Vehicle Mileage Tax: Just another tax or one step closer to a closed in society?








 I had never heard of a Driver User Fee, or vehicle mileage tax before until I found out through some friends who are politically active here in Michigan that our Governor was considering implementing such a tax on us. Apparently the .6% sales tax that we get slapped on top of our gas tax just isn't enough to cover the roads. Admittedly I was a little confused about what exactly a mileage tax was and how exactly the government would go keep track of the miles I drive and the roads I drive on. Naïve of me, I know.
A vehicle mileage tax is just that, a tax on the miles you drive. This money supposedly goes to help maintain the roads. Seems legit right? I mean we use the roads and particularly here in Michigan the winter weather darn near destroys them every year! So what’s the big deal with paying a tax that will help keep the roads fixed up and make them safer?
           
The Rand Corporation, in their document “Mileage-based user fees for transportation funding. A primer for state and local decision makers” claims “the federal government and most states levy fuel taxes on a cents-per-gallon basis, so real revenues will inevitably decline unless the per-gallon tax rates are periodically increased to offset the effects of both inflation and improved fuel economy” and with the subject of gas price increases being a touchy one, most state and government officials rarely want to go there. Rand Corporation also points out that with the increase in fuel economic and alternative fuel cars the issues related to per-gallon taxes will become more of an issue. That’s right, alternative fuel vehicles are taking money away from the roads. 
            
I personally see a few issues with this. Obviously there is the issue of yet another tax but what bothers me most is at its heart, Vehicle Mileage Taxes seem like one more way for the government to monitor our every move and push us into a closed in society where we have practically no anonymity.
So how would a tax strip away our privacy? In order for the states to properly tax our mileage they would need to know how much we drive and on what roads (since the taxes may vary depending on what county or road you’re on). There are a few different ways states have been looking at regarding this. The favored one appearing to be a GPS mileage meter that is placed in the car somewhere(Is the Progressive Snap Shot coming to mind anyone?) and collects the data.
        
 Minnesota recently, in conjunction with the Battelle Institute tested a way of monitoring mileage using cellphone towers. “The Global Positioning System (GPS) collected data via an in-vehicle smartphone, an Android-based app created by Battelle, and a Bluetooth vehicle ID module plugged into on-board diagnostics. A commercial cloud service hosted the data warehouse. For privacy, the solution saved anonymous location points and enabled auditing for a billing dispute only by the owner of the phone that collected the data. Battelle’s solution also provided drivers with value-added services of road sign display and support for third-party navigation apps.”  Seems the least they can give us in exchange for monitoring our every move is some fee navigation.  Other methods of tracking mileage would be simply estimating annual mileage on certain types of vehicles and of course occasional odometer inspections!
           
Now, once they have that tracking system in order how are they going to bill us? Once again there are several proposed ideas. Once again Minnesota has a great layout for this. The seemingly less invasive option is charging the fee with vehicle registration. Other options include invoicing to the GPS system (and let’s face it they’ll try to attach payment directly to our checking accounts if they can). Still sounding okay to you?
           
Back to the issue of privacy, first there’s the concern with being tracked everywhere you go. The use of a GPS system to monitor our mileage is just Big Brother bearing down on us more, but what if the systems were to get hacked? Fear not, they have a solution for that too. Why they’ll just delete your information as soon as you've paid your tax. Or better yet, how about they just do odometer inspections? I trust the Government and their concern for privacy about as much as I trust the guy on the corner who tells me the car radio he wants to sell me isn't stolen.
            
In my opinion this tax is a ploy to start bringing us closer to a closed in society. If you can’t afford to drive your car, you are confined to one area mostly and suddenly you become much easier to keep track of and to control. I am by no means denying our need to pay to keep the roads we use up, but this is not the way. It’s easy to go along with what the Government tells us. Particularly when in theory the ideas seem good, but technology and innovation aside take a moment to look at the whole picture and ask yourself why you’re okay with being tracked everywhere and how you feel about being charged another tax. Don’t be fooled by the promise of safer roads, ease and convenient ways to pay fees and “free” in car navigation services. Just because the frosting on the cake looks good doesn't mean the cake isn't poisoned.
            
Right now several states including, Washington State, Oregon, Nevada and Colorado are testing or considering testing out this new method of taxing drivers. 







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