Edmunds Daily

GPS and Gas Tax -- Good and Bad Ideas from the State of Massachusetts

  Massachusetts Gov. Deval Patrick.jpg

(Massachusetts Governor Deval Patrick is proposing both a GPS driving tax and a gas tax.)

There are all manner of schemes being proposed to fill the dwindling state and federal coffers, many of which often focus on hitting the wallets of the driving public.

But rare is the state that has two driving-taxation plans which are as simultaneously enlightened and enraging as those proposed in the state of Massachusetts. Both have been promoted by the state's Governor, Deval Patrick.

The first of Patrick's initiatives definitely falls on the troubling side: the Governor is pushing a plan - "controversial" would be putting it mildly - to install Global Positioning System (GPS) chips in vehicle inspection stickers that would be used to tax the vehicle owner for the number of miles they drive.

Notwithstanding the obvious "surveillance state" social implications, Patrick's GPS idea - not new to the ever-energetic minds that propose innovative methods of taxation - seems fraught with technical hurdles and potential loopholes.

Other states and the federal government have floated similar monitor-your-movement taxation plots. But the notion is particularly unsavory coming from the home state of the Boston Tea Party and the "Shot Heard 'Round the World."

Despite the misguided GPS-taxation plan, Patrick also has suggested his state push forward with a driving-taxation strategy. In effect, this is a boiled-down version of what should be central to the new national energy policy: Patrick wants a drastic increase in the state's gasoline tax.

Patrick wants to increase Massachusetts' gasoline tax by 19 cents per gallon, reports the Boston Globe. The plan has of course inspired outrage of comparable proportion to the GPS-tracking taxation plan. But the reality is that taxing the fuel is the most efficient and effective way to both increase driving-related revenues and incentivize energy efficiency.

For the gas-tax proposal, Patrick already has lined up considerable political artillery and has the backing of credible voices of reason.

The sensible arguments for the tax are analogous to those that make the case for a marked increase in the federal fuels tax. For one, estimates from Massachusetts say the poor condition of under-maintained roads costs the average household in the state about $300, or more than twice what the projected hike in the gasoline tax would cost.

The inability of fuel-tax revenues to keep pace with infrastructure-maintenance costs also hits Massachusetts taxpayers with outsized debt payments on long-term bonds required to pay for even baseline maintenance.

But most of all, Patrick's gas-tax proposal makes his state's debate a microcosm of the larger debate about U.S. energy policy. Until fuel prices (including the portion attributable to taxes) rise to a level reflective of that energy's genuine value to society, the nation as a whole will continue to swill gasoline and diesel at the rates that have required ever-increasing levels of dependence on imported oil - and with that, the myriad economic and geopolitical problems that come with reliance on foreign energy sources.

So a restrained shout-out should go to Patrick. His GPS-taxation plan stinks just like all those before it, never mind that the technology to enable it continues to improve and get cheaper. But is the Massachusetts' gas-tax hike indeed the right course? If so, could it once again allow the state to show the way to a more prosperous future? 

-- By Bill Visnic, AutoObserver Contributor

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9 Comments

On the surface, I would have to agree with Bill's assertion that the debate in Mass. is a microcsm of the larger US debate. However, the issue is much more complex.

What this blog misses is the anger directed at the oversize, highly-inefficient burrocracy here in Massachusetts. Patrick promised to reform, and eliminate perks such as lifetime employment and double-dipping on pension, only his proposals were watered down. So now the taxpayers of this state are being asked to poney up more money to pay for things like the bonds on the Big Dig before meaningful reforms are put into place.On the surface, I would have to agree with Bill's assertion that the debate in Mass. is a microcsm of the larger US debate. However, the issue is much more complex.

What this blog misses is the anger directed at the oversize, highly-inefficient beaurocracy here in Massachusetts. Patrick promised to reform, and eliminate perks such as lifetime employment and double-dipping on pension, only his proposals were watered down. So now the taxpayers of this state are being asked to poney up more money to pay for things like the bonds on the Big Dig before meaningful reforms are put into place.

Well this'll certainly please those here who actually advocate higher taxes of this sort (but strangely wouldn't pay for them themsleves unless they were forced to...)

To those, looks like your ship has come in. Have a nice trip!

I think it's a great a idea. At a time when Americans are struggling we should definately raise taxes on a necessity. That will certainly help turn our economy around.

I can't find any reason of non approval of this.GPS tracking devices provides you powerful tools for cost control and accountability that guarantee increased productivity, efficiency, and profits. Also provide accurate text reports of travel & stop times, locations, speed, and map displays showing routes traveled. Track vehicles with ease with a GPS Vehicle Tracker from Spyville.

GPS Vehicle Tracker from Spyville

I'm all for raising the gas tax. This fixed dollar (cent) amount per gallon was a bad idea. Well not so bad, but if it doesn't go up every year to meet COLA or Inflation, it soon becomes insufficient. I'm a firm believer that the gas tax needs to be adjusted annually.

What they want to do is counter to what I just said. We're currently in a RECESSION. The gas tax needn't go up right now.

A GPS system seems like a waste of money. How much do we need to spend on such a system? How's it going to work for out-of-state vehicles? Then there's the whole Tundra vs Focus (see how it can go the other way) wear on the road argument.

A mileage tax is even more regressive than a gasoline tax. At least a gasoline tax is offset by the fact that economy cars are avaialable and can achieve ever-increasing fuel economy.

I would prefer a phased-in gasoline tax increase over the next five years, so buyers and the automotive industry can PLAN and make intelligent choices.

This disregard for ORDER and PLANNING is my biggest beef with liberal government. Everything is knee-jerk and violent legislation reaction that obscures reason and decision making, until we are all just huddled masses waiting for a daily allotment of bread from the DMV.

A mileage-based tax is ridiculous. And installing GPS systems? That's an invasion of privacy!

I'm all for a gas tax if it's meant as a deterrent to reduce pollution and energy (oil) consumption. But in this case, it appears to be simply an attempt to tax more money! (If they need more tax they should just increase taxes in general.) Besides, if you're gonna introduce a gas tax, provide good public transport.........

Jederino, a lack of order and planning is always a bad thing, and conservative governments can also be guilty of it! (Iraq, anyone???!!) Don't equate bad planning and disorder with liberal government!

Actually, the gas tax seems to be aimed at reducing pollution and energy consumption! In that case, I think a 19c increase might be too little: I know a 19c increase wouldn't force me to drive less!

Balckadder, you're right. Conservative government is also quilty of bad planning, just usually not in this particular sphere of taxation.

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