A new way to tax: vehicle miles traveled

A new way to tax: vehicle miles traveled

U.S. roads, highways and bridges are badly in need of repair. The American Society of Civil Engineers gives our roads a D- in its Infrastructure Report Card. Between the higher overall fuel efficiency of the U.S. fleet and the tendency of Americans to drive less in a shaky economy, the gas tax hasnt been raising enough money to keep our roads in good condition.

Enter a new way to raise tax, the vehicle miles traveled (VMT). The VMT is likely the way states will raise money in the future for their roads and infrastructure, Joshua Schank, president and CEO of the Eno Center for Transportation, told CNBC.com. The states arent yet to the point where theyve figured out exactly how to implement the VMT, but theyll get there.

As the fleet becomes more fuel-efficient, the gas tax will continue to fall short. Electric vehicles contribute nothing to road upkeep, and hybrids, very little.

The hard part is figuring out how to calculate VMT without infringing on driver privacy. The idea of putting transponders in all cars and trucks has been floated, but who would have access to the information? The bureaucracy requirements would be mind-boggling.