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Monday, February 07, 2005

Re: miles tax to replace gas tax.

I am writing in reply to Kents comments on the miles tax. First, I have to say that I would love to see a miles tax, and I think anyone who drives a truck or SUV would feel the same. As far as fuel efficiency and emissions goes, this seems to be a poor policy. It creates incentives only to drive fewer miles, not to purchase cars that use less gas, in fact, it creates incentive to buy larger cars that burn more gas. A truck that gets 8 mile to the gallon is taxed at a lower rate than a car that gets 30 miles to the gallon. Like I said, this wouldn't bother me since I like SUVs and trucks. However, I don't think it would fly with the environmentalists. Second, although I don't have any idea about the cost of the GPS system, it seems to me like it would be costly to install, track, and maintain the systems, which ultimately would be passed onto the consumer, which in turn raises the cost of automobiles. Third, a miles tax in my opinion would not help the inversions, even if there was a great tax placed on cars that drove on that day. Since a miles tax would eliminate the need for smaller fuel efficient cars, there would be more trucks and SUVs driving, burning more fuel, and causing a worse inversion, even if fewer people were driving.

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