At the beginning of the 1900s, automobiles were introduced to the American public. It didn’t take long before they became popular and started replacing horses and carriages. It also didn’t take long before states saw a new way to earn money by taxing the gasoline the cars used. In February, 1919, Oregon passed the first state gas tax which was 5¢ per gallon. By 1929 every state had followed Oregon’s example and passed their own gas taxes. By 1939, the average state gas tax was 3.5¢ per gallon.
Over the years, gasoline taxes have steadily increased with most states using the revenue for road and highway maintenance. However, with the introduction of more fuel efficient cars along with the hybrids and electric cars, some states have seen a reduction in their gas tax revenue. Their solution is to start taxing cars by the mile rather than the gallon.
One state exploring this avenue is California that already has the third highest state gas tax, 63.8¢ per gallon, in the nation, behind Connecticut and Pennsylvania. California is run by liberal tax happy Democrats who are now looking into what is called the Vehicle Miles Traveled Tax or VMT fee.
VMT fees can be applied using flat fees per mile driven or variable fees based upon the time of the day, type of road or other factors. Some have posited the idea of using GPS monitoring of vehicles to help determine how many miles they drive.
So while many Americans have been turning to vehicles with better mileage in order to keep their expenses down, California’s Democrats are looking at ways to keep their hands in the pockets of hard working Americans. They can’t stand the thought of citizens trying to make ends meet and even try to save a little money for their kids’ education or their retirement. They’ve already implemented the nation’s first cap and trade carbon tax on businesses and now they want to further bleed anyone driving in their state.
This is another reason that I advise people to avoid traveling to and in California. For those of you living in there, I would highly advise you look for employment in a more citizen friendly state like Texas or Arizona.