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JT

Where Have All The Taxes Gone? (Short term problem with plug-in E-Cars)

I should have seen this one coming. Mea Culpa. My only excuse is that I was too caught up in the potentials of a clean, Green future to consider the immediate moment.

Electric cars have a problem. It isn't battery life, or expense, or road safety, or even distance limitations. It's fuel tax.

Federal and State governments tax gasoline. Some counties and cities may do so as well, either directly or by sales tax. The tax on electricity isn't anywhere near as high, and there's no taxing what you generate yourself. So when we make the switch to e-cars, where is the money coming from to replace that lost revenue?

License plates help keep local and state roads intact. Some sort of toll might be imposed as well. But that won't address the many millions in Federal Highway Funds that keep the states afloat as they maintain and restore the highways. It won't replace the lost revenues that fund whatever else it is that They do with the rest of the gas tax money either. I don't know what will, but I sense a hidden cost that will distort e-cars' cost per mile significantly.

When we require a change, we must stand ready to provide the means as well, suggestions as to how we might make it feasible to accomplish that change. To my knowledge, this hurdle has yet to be addressed. Your thoughts?

Tags: cars, e-cars, electric, funds, highway, tax

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