Wednesday, September 15, 2004

Oregon's Mileage Taxation Proposal

To compensate for today's incredibly high gas prices, the state of Oregon has proposed a new idea to cut down the cost of gasoline. This new idea would take all tax off the price of gas, and drivers would be charged a set fee for every mile they drive within their state. However, this new idea will not be run on an honor system, in fact drivers will be charged and additional $225 to install a GPS (global positioning system) in their car that will record how many miles they are driving. To me paying a higher price on gas seems more cost effective. When everything is all said and done, the government is going to lose money. It was estimated that just to install GPS systems in everyone's car would roughly cost $23 million dollars. Another idea was brought up, why not charge a $225 dollar tax on all cars and keep the money instead of sending it to the company that installs these systems? There have been no final decisions as to what will be done, but charging citizens by the mile is not an effective way to compensate for high gas prices.

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