During the past several years, there has talk and tests on charging people to drive their vehicles by the mile instead of using the gas tax. The gas tax in Tennessee goes to pay for road maintenance and expansion which is on a pay as you go system. With the government mandates that increased the efficiency of vehicles, people are filing up their vehicles less often which decreases the amount of tax being collected at the pump. The same can be said about droughts. The government puts limits on the amount of water you can use, so demand goes down which decreases revenue. Since the revenue is down from less water demand, the rates are increased. Once the drought is over, water rates does not often go down which increases their revenue further. So to get more tax revenue for the roads, the state and federal are looking for new options to increase the gas tax–thus charge a tax by the mile. This brings up a question for all of us to answer, would we pay more at the pump when we fill up or by the mile (depending on the rate). Which would be better for you–gas tax or by the mile?
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