This article notes how the state government in Oregon worked to reduce fossil fuel consumption but then, as a consequence, saw its tax revenue fall, so now it wants to tax mileage by having all cars install a GPS device letting government know where and how much you drive so they can calculate your taxes.
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“For years, Oregon has been diligent about reducing the state's dependence on fossil fuels, but its environmental consciousness has come at a stunning price -- gas tax revenue is down $4.8 million a year compared with 2006.
“That drop, caused by lower fuel consumption and a slowing economy, has prompted Oregon to consider a new way to pay for road repairs: Democratic Gov. Theodore R. Kulongoski's upcoming budget calls for a highway tax based on mileage, not gasoline purchases.
“A state task force will look at equipping every new vehicle in Oregon with a Global Positioning System to record every mile driven and where. Motorists would pay at the gas pump based on how much they drove, no matter how fuel-frugal their vehicle.”