The US Chamber of Commerce (a very powerful and influential lobbying group, not an actual governmental agency) has
sponsored a report that highlights the funding gap for highway projects, which of course are paid out of the Highway
Trust Fund. That particular bank account is fed by fuel taxes, and the report suggests that revenues have to be
increased in some manner. Among the suggestion is that the fuel tax should be indexed to inflation – not a terrible
idea – and that hybrids and alternative-fuel vehicles should carry an additional tax since the increased fuel economy
of such vehicles would result in decreased revenues. Now that’s a terrible idea. Then again, the federal
government isn’t known for consistent taxation policy, so is it possible that hybrid owners could get hit with tax
breaks and extra fees? It’d be criminally stupid, but somehow I don’t put it past our Washington crew.
Should hybrids be taxed at a higher rate?
The US Chamber of Commerce (a very powerful and influential lobbying group, not an actual governmental agency) has sponsored a report that highlights the funding gap for highway projects, which of course are paid out of the Highway Trust Fund. That particular bank account is fed by fuel taxes, and the report suggests that revenues have to be increased in some manner. Among the suggestion is that the fuel tax should be indexed to inflation – not a terrible idea – and that hybrids and alternative-fuel vehicles should carry an additional tax since the increased fuel economy of such vehicles would result in decreased revenues. Nowthat’s a terrible idea. Then again, the federal government isn’t known for consistent taxation policy, so is it possible that hybrid owners could get hit with tax breaksand extra fees? It’d be criminally stupid, but somehow I don’t put it past our Washington crew.