The State of Connecticut is, if every so timidly, exploring the idea of imposing a mileage tax in Connecticut.
The state of Connecticut is on the road to testing the possibility of a ‘Mileage Tax.’ The brakes were put on this plan one year ago when News 8 first reported about the idea, but now it’s back.
With GPS and smartphones, the idea of the state charging you for the number of miles you drive is technologically possible and several states in the Northeast, including Connecticut, want to give it a test
via WTNH News
The DOT is downplaying the initiative:
Judd Everhart, a spokesman for the Department of Transportation, said the agency did apply for the federal grant. However, “we have no intention of moving forward with a mileage-based user fee program.”
The current gas tax is already pretty regressive, but a mileage tax would add a real ironic twist to the current situation. Assuming the tax would replace the gas tax, or at least keep that tax from rising, it would actually have the result of shifting the tax burden to people who drive fuel efficient cars. The gas tax falls most heavily on people with inefficient cars, since their tax per mile driven is greater than those who drive fuel efficient cars. As an example, if the gas tax were $.40 a gallon, and I got 40 mpg I would be paying 1 cent a mile. If you got 20 mpg, you’d be paying 2 cents a mile. That added cost is a small but nonetheless real incentive to get a fuel efficient car. If we simply tax each mile driven, my comparative advantage disappears; the tax burden has been shifted from those driving inefficient cars to people driving efficient cars. This doesn’t make any sense from a public policy perspective, but then, how much of our tax system does make sense.
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