Virginia's Gov. McDonnell proposes elimination of gasoline tax

[aGameOfThrones]

The assessment of a gas tax and the role it plays in a state's transportation and overall budgets has been a topic of discussion for a while, and Virginia state governor Bob McDonnell is the latest to offer up another way to secure more revenue from the state's residents to pay for their roads and public transportation. McDonnell's proposal would eliminate Virginia's 17.5-percent gas tax entirely, with funds for infrastructure projects coming from an increase in the sales tax from five percent to 5.8 percent and an annual $100 fee assessed on drivers of alternative-fuel and hybrid vehicles. He would leave in place the tax on diesel fuel, and naturally, the federal gas tax would remain untouched.

Much of the response to the proposal has been, "Um... what?" – as well as "bad policy," "a no-brainer for dumb idea of the week" and "'bold' and 'unprecendented." McDonnell is right to suggest that a possible response to "any innovative and comprehensive transportation plan" is dislike. Still, we think there are holes in parts of his plan. Virginia's gas tax is already one of the lowest in the nation, doesn't rise with inflation and hasn't been increased since 1986. According to McDonnell, the revenue from it has 45 percent less purchasing power now than it did 27 years ago, so "It's a tax that's losing its value every year."

Raising it, or getting it adjusted to inflation, is for some reason not on the menu. The 0.8-percent bump in the sales tax would bring in $600 million more per year than the current gas tax does, yet to eliminate the gas tax entirely seems a bit much; it might not pay as much as it used to, but its still a pretty fair and direct usage fee, so why not take advantage of whatever it can provide?

On top of that, to jettison the gas tax but then tax owners of alternative-fuel and hybrid vehicles because "these vehicles generate little federal gas tax revenue and therefore need to contribute their share to fund the roads they use" seems disingenuous. That means the SUV buyer pays for roads at the cash register, while the Honda Insight buyer has to chip in at the register and the Department of Motor Vehicles.

And on top of all that, the move to a sales-tax funded transportation infrastructure unlinks the "fair share" argument from "the roads they use." People who buy more goods will pay more for their roads, not necessarily people who use the roads more. It's only a proposal at the moment so it has a way to go before becoming law, our guess is that it will have a long fight as well.

http://www.autoblog.com/2013/01/16/virginias-gov-mcdonnell-proposes-elimination-of-gasoline-tax/

[fisharmor]

Oh, please please please please let this get somewhere.....

[Keith and stuff]

That would be fantastic for people that drive through VA and terrible for people and businesses in VA. Since I don't live in VA (or own a business in VA) but occasionally drive through the state, you might be able to guess where I stand on this issue :)

What is with these Republican governors and their proposed tax plans? The governor of MA (a Democrat) is talking about increasing taxes by 2 billion by increasing the income tax and cutting the sales tax. I'd expect a horrible plan for a Democrat. However, these GOP governors (1st in LA and now VA) have pretty bad tax reform plans also.

[Anti Federalist]

According to McDonnell, the revenue from it has 45 percent less purchasing power now than it did 27 years ago, so "It's a tax that's losing its value every year.

O Rly????

And why the fuck do you suppose that is, hmmmm?

Anyways, watch for the bait and switch.

GPS enabled "drive by mile" fees on their way in the wake of this.

With the added benefit of the government's hairy eyeball on you all the time.

[BAllen]

Sounds like a bad idea. Do they have toll roads in VA?
I support the per gallon tax, and I drive about 30k miles per year. It's a fair tax. You drive more, you pay more. If you choose a more fuel efficient vehicle, you pay less. If you drive a guzzler, you pay more. We have good roads, and we don't have toll roads.

[Keith and stuff]

Do they have toll roads in VA?
Yes.

http://www.virginiadot.org/images/ct-tollmap.gif

http://www.virginiadot.org/travel/faq-toll.asp

[aGameOfThrones]

Sounds like a bad idea. Do they have toll roads in VA?
I support the per gallon tax, and I drive about 30k miles per year. It's a fair tax. You drive more, you pay more. If you choose a more fuel efficient vehicle, you pay less. If you drive a guzzler, you pay more. We have good roads, and we don't have toll roads.

We can't have that.

[mad cow]

The sales tax idea is dumb,roads must be paid for so some sort of tax is necessary,but it should be as close to a user fee as possible.

A general sales tax has nothing to do with road usage and I hate tolls,so that leaves fuel or mileage taxes for me.
My favorite choice would be where they checked your odometer annually,multiplied by $0.0XX and sent you a bill every year.

At $0.17/gal.,a car averaging 20mpg driven 12,000mpy pays $102 in annual gas tax.I think this is close to average in both mpg and miles driven and apparently it is not enough.

The same car would pay $120 with a $0.01 mileage tax,drive a thousand miles a year,pay $10, 50,000 miles,pay $500.

We already have annual inspections where they check and record your odometer,This would be simple to apply.

And gas would also drop $0.17/gal. at the pump. :cool:

[BAllen]

Here's a breakdown of the region:
http://abclocal.go.com/wtvd/story?section=news/abc11_investigates&id=8578100

So I pay about $570/yr. gas tax. But I like the good roads. We have a lot of 4 lane roads. I lived in SC for a few yrs, and their roads really suk!! Mostly pot hole, 2 lane roads.

[aGameOfThrones]

The sales tax idea is dumb,roads must be paid for so some sort of tax is necessary,but it should be as close to a user fee as possible.

A general sales tax has nothing to do with road usage and I hate tolls,so that leaves fuel or mileage taxes for me.
My favorite choice would be where they checked your odometer annually,multiplied by $0.0XX and sent you a bill every year.

At $0.17/gal.,a car averaging 20mpg driven 12,000mpy pays $102 in annual gas tax.I think this is close to average in both mpg and miles driven and apparently it is not enough.

The same car would pay $120 with a $0.01 mileage tax,drive a thousand miles a year,pay $10, 50,000 miles,pay $500.

We already have annual inspections where they check and record your odometer,This would be simple to apply.

And gas would also drop $0.17/gal. at the pump. :cool:

And anyone who drives less than 10k miles per year doesn't pay any tax. You know, to help the poor. This will improve car sales as people will have 2 cars to get less than 10k each.

[Uncle Emanuel Watkins]

http://www.autoblog.com/2013/01/16/virginias-gov-mcdonnell-proposes-elimination-of-gasoline-tax/

Indeed, do away with all taxes on gasoline and then ration it. As we live in a jobless service economy, there is no longer a reason for new freeways and roads. This will create new jobs. This will give young people a brighter future and a reason to live.
In the end, fewer of them will end up shooting a lot of elementary school kids before committing suicide.

[LibForestPaul]

O Rly????

And why the fuck do you suppose that is, hmmmm?

Anyways, watch for the bait and switch.

GPS enabled "drive by mile" fees on their way in the wake of this.

With the added benefit of the government's hairy eyeball on you all the time.

Smoke and mirrors. Any one who talks of "tax reduction" is either a liar or an idiot. Unless they speak of government head count reduction, government expenditure cuts, government pension reform, they are just another elite toying with Boobus Americanus.

[ClydeCoulter]

O Rly????

And why the fuck do you suppose that is, hmmmm?

Anyways, watch for the bait and switch.

GPS enabled "drive by mile" fees on their way in the wake of this.

With the added benefit of the government's hairy eyeball on you all the time.

Yea, they don't stop and say, "Hey, this inflation thing is hurting savers and planners, where does it end"...duh...stop...think....

[BAllen]

Indeed, do away with all taxes on gasoline and then ration it. As we live in a jobless service economy, there is no longer a reason for new freeways and roads. This will create new jobs. This will give young people a brighter future and a reason to live.
In the end, fewer of them will end up shooting a lot of elementary school kids before committing suicide.

Ration gas? You're crazy! Who decides how much gas each person gets? What is the criteria? No, the gas tax is the best solution to roads. It's a fair tax. If Va. had a better tax, they wouldn't need the toll roads. Toll roads are highway robbery.

[Uncle Emanuel Watkins]

Ration gas? You're crazy! Who decides how much gas each person gets? What is the criteria? No, the gas tax is the best solution to roads. It's a fair tax. If Va. had a better tax, they wouldn't need the toll roads. Toll roads are highway robbery.

Doing away with the taxes will cause people to buy more gas. Instead, ration it. They have us over a barrel. Look, it is the most natural thing in the world to think people are a lot dumber than they truly are. In getting along, I like playing the part. But I'm not naive. How do oil and gas companies market their products? Well, in tellitubby land, they all do it three ways -- regular, premium, and super premium. This isn't marketing and that is part of the problem. True marketing would bunch together a lot of buying customers as purchasers of lots of fuel at the lowest cost. Have it where a customer can purchase different membership cards from opposing companies to buy gas at the lowest possible rate.
Okay, here is one option. In other words, the free enterprise system has never got a chance to work.
So many millions of rich people own stock in energy companies. To do what is in their best interests of the people goes against their best interests.
Right?
We are talking dangerous ideas here. Like my idea involving socially communising only the banking industry which is probably the reason I got banned previously from this forum.
Yet, doing what is in the best interest of the disadvantaged, with these being the people or the commoners, has always worked out in the end to benefit the advantaged in society as well.
By cutting all taxes on gasoline and rationing it, yes people will cheat but to hell with them, we will get ourselves off from being over a barrel.

[BAllen]

You still make no sense.
1. Rationing is socialist crap. I drive 30k miles a year. If gas is rationed, I wouldn't be able to do my job.
2. What does this have to do with roads?
We're talking about gas tax for roads. If we don't have that, how will roads be maintained?