Would you volunteer for Oregon’s new experimental program to tax drivers by the mile as a substitute for the gasoline tax? I wouldn’t.
The state started testing this month a system in which drivers pay 1.5 cents per mile driven. Oregon hopes for 5,000 voluntary participants, each of whom will install in his or her vehicle what the state calls a “mileage recording device.”
The program, known as OReGO, is defended as necessary to make up for gas tax revenue that the state is losing as consumers shift to more fuel-efficient vehicles. The state’s gas tax of 30 cents a gallon pays for road maintenance, which is now suffering. Thus the change.
I generally prefer use taxes because, when properly designed, they place the cost of public goods on those who consume them. So why wouldn’t I volunteer for OReGO if I lived in Oregon? Let me offer four reasons.