Ray LaHood, the Secretary of Transportation, recently suggested that the Obama administration tax motorists based on their mileage instead of their gasoline consumption. The argument goes that as the public starts using more fuel-efficient cars, the government will receive less revenue to fund the construction and maintenance of our roads. This must be an idea straight out of Detroit.
| Make/Model | Combined MPG |
Fed Gas Tax ($0.184/G for 100 Gallons) |
Miles Driven (100 Gallons) |
| Toyota Prius | 46 | $18.40 | 4,600 |
| Toyota Camry | 25 | $18.40 | 2,500 |
| Ford F-150 2WD | 16 | $18.40 | 1,600 |
| Total | $55.20 | 8,700 |
So, the table above shows how much the federal government will collect in gasoline sales taxes when the owners of each of the above three cars purchase 100 gallons of gasoline. The combined MPG numbers comes from www.fueleconomy.gov.
Now, I’m no fool. If the government is proposing a new tax formula, I’m pretty sure that it won’t end up being a tax cut. So, at a minimum, to collect the same amount of dollars, but on a mileage basis, this is how the numbers shake out.
| Make/Model | Miles Driven (100 Gallons) |
% of Total Miles Driven (100 Gallons) |
Fed Gas Tax (Total) |
Fed Gas Tax (Per Gallon) |
| Toyota Prius | 4,600 | 52.87% | $29.18 | 0.292 |
| Toyota Camry | 2,500 | 28.74% | $15.86 | 0.159 |
| Ford F-150 2WD | 1,600 | 18.39% | $10.15 | 0.102 |
How does the mileage tax look now? Imagine pulling up to the pump in a Toyota Prius and noticing that you are paying triple the federal gasoline tax on a per gallon basis as someone driving a Ford F-150 or a Hummer H3?