The current tax was essentially based on both mileage and efficiency. (it's baked into gas tax). So essentially to keep the status quo of "fair", the EV one should similarly be based on miles driven. It's the only way to logically keep it "fair".
Fair share is always, well, unfair in the big picture because there's tons of government spending in the mix using taxpayer money that isn't fair share (welfare, Medicaid, schools, etc where the user isn't paying anywhere near their cost but non-users are paying way more). Roads are more universally used by more of the population (100%, really, even if you don't do the driving) than those other things, so one could make an argument roads are a better fit for just dropping user-based funding and using the general fund altogether.
Yes, usage is how they decided on the gas tax.
No state collects the federal gas tax, at the pump or otherwise. Federal excise taxes on gas are paid by wholesalers and distributors directly to the IRS.
Wyoming is a good example of their 3 interstates (I-25, I-80, and a small section of I-90 in the corner) being far more national than local usage (unlike most states). I don't know the number, but relative to most states, it's clearly a high% driving thru Wyoming (out-of-staters) rather than within it (locals). Especially the longest one (I-80). It's trucker row. We do the same with multiple trips each year from our home in Northern CO to/from Reno using I-80.
The wholesaler/distributor is the one that remits gas taxes in bulk for the fuel that passes through them. That way it's fewer transactions rather than millions of tiny transactions like regular sales tax (cheaper and easier to administer in bulk). The distributor calculates it for state rate and remits that tax to the states, then calculates it for the federal rate and remits that tax amount to the feds. States don't collect any federal gas tax.
Wrong. This is basic economics. The distributors and wholesalers pay the excise tax. They pay it directly to the IRS. The IRS takes an extremely dim view of tax evasion. The distributor will increase the amount they charge their customers by the amount of the Federal excise tax on gasoline so that the per gallon excise tax is a net wash to them. Your 18¢ per gallon attributed to the excise tax goes into the retailer's pocket. Not 1 penny of that particular 18¢ goes to the IRS. Why? Because they paid 18¢ per gallon more to their distributor. The distributor owes that 18¢ to the IRS. This whole scenario is repeated for any state excise taxes on a gallon of gas. The only time the state is directly involved at the retail level is in the sales tax or G.E.T. in the states that tax gas sales. Then the retailer is writing a check to their state tax authority quarterly. Sales taxes on gas are the only gas tax you're directly charged for.
Excise taxes are not sales taxes. The excise tax is already paid whether or not you buy gas. You buy something at Lowe’s, you are paying a sales tax. Excise taxes are not collected that way.
Except for the states that don't collect and administer an EV registration fee at all. Or use different criteria.
Oh, I thought the TX tax was lower, so maybe I don't feel that bad even though I have almost half that mileage per year. I also pay tax on the electricity used to charge the MME, so double-taxation?
The tax you pay on electricity usage is a different jurisdiction (and doesn't go toward roads), so it's really layered taxation that's funding different things. Similar to how sales tax often is layered by multiple jurisdictions for the same purchase (state + city + county + special district), or the same income is often taxed by the feds + the state.
This is incorrect. States do not collect the federal gas tax, anywhere in the process. The IRS collects it directly from gasoline distributors.
Little extra cost? You clearly have no idea of the scope of what it takes for a state just to administrate and collect sales tax. Or what it takes for a business to pay their quarterly sales tax.
That's exactly what the Senate said:
Yes that’s the excuse they used.
