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. 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.
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