Taxes as thanks for going green
June 19, 2013 - 11:14 pm
The road to hell is paved with good intentions, and politicians are complaining that owners of hybrid and electric cars aren’t paying enough for the asphalt. Our elected officials are right, and it’s their own fault.
For the past decade, governments have provided all sorts of incentives aimed at getting consumers into green cars. Many of these vehicles are cost-prohibitive for the average buyer. So Uncle Sam has offered subsidies and made rebates available, all in the name of saving the planet.
Now that substantial numbers of these cars are on the country’s highways, along with millions more vehicles that meet ever-higher government fuel-efficiency mandates, gasoline tax revenues have taken a significant hit. According to a June 9 Bloomberg News report, state and local gas tax receipts have dropped every year since 2004. By 2010, revenue had fallen off 7 percent, to $37.9 billion.
Funny how that works, isn’t it? Cars that don’t use as much — or any — gasoline are pushed hard by the government, which then acts surprised when the gas tax pipeline runs a bit drier. Bloomberg notes that nearly 40 percent of states’ highway revenue comes from fuel taxes
Don’t fret, road contractors. Government has a predictable solution: Another layer of taxation.
After pushing Americans into these vehicles on the promise of saving money, protecting air quality and addressing the scourge of phantom global warming, states are now charging higher fees to owners of hybrid and electric vehicles. Washington has a $100-per-year fee for electric car owners; Virginia is about to start charging $64 annually for hybrid and electric cars; North Carolina’s Senate passed a plan that includes a $100 fee for electric cars and $50 for hybrids; and several other states are considering such proposals.
Don’t be surprised if Nevada climbs on board. This month, the Legislature authorized the Clark County Commission to increase the local gasoline tax, and a pair of fuel tax questions will appear on the 2016 ballot. Southern Nevada has billions of dollars worth of critical, unfunded highway projects.
There is indeed a fairness issue here. Hybrid and electric cars use the same roads as gas- and diesel-powered vehicles, while not paying as much toward upkeep of highways.
Still, governments should stop demanding that car companies produce more energy-efficient vehicles, subsidizing the daylights out of some of those vehicles so consumers can actually afford them, then taxing those consumers on the back end because of a complete lack of foresight in enacting such policies in the first place. If drivers want the feel-good benefits of owning a hybrid or electric vehicle, make them pay full freight. Would you pay an extra $5,000 up front to save less than $1,000 per year on gasoline?
If this becomes a trend, as Fox News contributor and Hotair.com’s Mary Katharine Ham sarcastically notes: “I look forward to the taxing of nonsmokers to make up for all that lost tobacco tax revenue, too.”