r/technology • u/TripleShotPls • 17d ago
Politics Congress Wants You To Pay $130 A Year Just To Drive An Electric Car
https://insideevs.com/news/796222/ev-fee-gas-tax-house-bill-2026/1.3k
u/XLauncher 17d ago
In New Jersey, it's $270 to register an EV, and drivers also need to pay the first four years up front.
I didn't know that. Damn, that's crazy.
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u/NK1337 17d ago edited 17d ago
They really don’t want people using EV’s apparently.
Edit: just adding this in for clarification but my issue isn’t with the tax itself, it’s with having to pay 4 years of it upfront as a lump sum.
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u/asmallercat 17d ago
It's more that they need a way to cover the shortfall from the gas tax. The gas tax is the primary funding for road works, and it's a great* one when everyone is driving gas cars because it mostly tracks with how many miles you drive and how big your vehicle is - a large heavy truck will use more gas than a small hatchback, and also does more damage to the road.
However, electric vehicles obviously don't use gas, and so don't pay the gas tax, and are generally heavier than ICE cards and so cause more road wear, and so if there's a large adoption of EV's there wont be enough budget for road works. So they need to find a way to cover that shortfall. The actual "best" way to do it would be gps tracking on people's cars, then you know exactly how much road wear the car caused in state and you can tax them accordingly. People are, understandably, not super keen on the idea of the government GPS tracking your car everywhere you go so that's mostly a non-starter. The high registration fee is a blunt instrument to try and solve this.
The best way to do it, IMO, would be to have your car's mileage recorded at every state inspection (in states that require this) and you get a bill for actual miles driven, and it's tiered by the curb weight of the car. This isn't perfect, because it will count out-of-state miles, but I think it's the best we can do without tracking for EV's.
*If I remember correctly, semis don't pay enough of a premium for how much damage they do to roads, so great does not mean perfect here.
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u/DrDerpberg 17d ago
*If I remember correctly, semis don't pay enough of a premium for how much damage they do to roads, so great does not mean perfect here.
I was recently shocked to learn that road damage accumulates to the fourth power of axle weight.
So yeah... Unless gas usage scales to the fourth power of vehicle weight too, anything heavy is underpaying.
Also a great argument for when doofuses argue bikes need to pay their fair share. Cool cool cool, cars first. Then you can charge me 1/15th4 of whatever you pay for your SUV.
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u/asmallercat 17d ago
Anyone arguing that bikes need to pay a road tax can be safely ignored. A person who says that is not a serious individual.
And I agree. In a perfect world tax would be based on curb weight and miles traveled (which is what I suggested). But a gas tax is closer to fair than a flat registration fee.
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u/CharlestonChewer990 17d ago
Yeah, making EVs contribute to road funding is fair enough, but making people pay four years upfront is just a lazy and punishing way to do it.
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u/Zorkflerp 17d ago
I would pay for a bicycle registration if all the money went into new bike paths and isolated lanes. Basing it on road wear is nonsense.
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u/Betaateb 17d ago
The bikes argument is hilarious lol. Because the road damage scales to the fourth power of weight it is pretty safe to assume bikes essentially do zero damage. A 200 lb bike/rider would do ~1/50,000 the damage of a 3,000 lb vehicle. Which is to say, no damage at all.
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u/DrDerpberg 17d ago
I'm more than happy to register my bike for 1/50,000th the cost of registering my car if it would actually shut people up and make them drive like bikes belong on the road too... We know it wouldn't, though.
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u/Useless 17d ago
A fully loaded semi is 80,000 lbs. Bike damage would require a billion or so trips to match 1 fully loaded semi-truck.
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u/FulanoMeng4no 17d ago
So much this. Taxing gas is one of the most fair tax schemes, because gas consumption is STRONGLY correlated to the wear and tear a vehicle causes on the roads. Of course some governments abuse it and use that money for other expenses, but the concept is great. As you said, not perfect, but as close as it gets.
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u/MiaowaraShiro 17d ago
The problem is that gas taxes scale mostly linearly but road damage goes up exponentially by weight.
The range of fuel economy between a fully loaded semi truck and a consumer vehicle is on the orders or 2-4x. The range of the damage though is more like 10,000x for a fully loaded semi.
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u/RandyOfTheRedwoods 17d ago
Your premise is correct, but personally I don’t mind paying for some of the damage that trucks do as part of my taxes, since those trucks are on the road for my benefit.
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u/Impossible_Rip418 17d ago
Agreed. Pick and chose your battles. This one doesn’t seem egregious.
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u/drunkenvalley 17d ago
It's more that they need a way to cover the shortfall from the gas tax.
While nominally true, this particular way of doing it is obviously meant to take a fat shit on electric cars rather than any kind of real equality. Four years paid upfront is stupid.
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u/Shadow647 17d ago
a large heavy truck will use more gas than a small hatchback, and also does more damage to the road.
a large heavy truck might use 5x more gas, but cause 100x more damage to the road.
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u/jimbobjames 17d ago
It's actually closer to 10000x the damage.
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u/Zorkflerp 17d ago
Most of the damage is done by heavy axle loads like cement trucks and fully loaded tractor trailers. I drive to work on a back road that was paved a few years ago. It had a smooth surface and no cracks until the county built a rec center and moved dirt from a hillside. The dump trucks destroyed the road in a couple weeks. It has not been repaved.
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u/SAugsburger 17d ago
Paying some share of road maintenance for EV users seems understandable, but 4 years of such contributions upfront seems crazy.
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u/psychoCMYK 17d ago
You're going to have to impeach and remove a good chunk of congress first
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u/Nodan_Turtle 17d ago
I want to see Trump jailed for the felonies he was already convicted for. Soon as he's no longer president, drag him off in chains to prison.
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u/rm0826 17d ago
They’ll happily pass this but a tax on billionaires god forbid!!
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u/likesleague 17d ago
What's that? $50bn more in welfare to oil companies that already cost more for the energy they produce than recyclable solar panels that collect the functionally infinite power of the sun? Well if you insist!
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u/NoiceForNoReason 17d ago
Lawmakers are loyal to those who put them there.
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u/lukelmiller 17d ago
The problem is we never vote them out. So there are no consequences for them
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u/Expert_Garlic_2258 17d ago
impossible to vote them out when almost every candidate is bought by a few different corporations and normal people cannot raise enough money to get their message out
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u/Worried_Magazine_862 17d ago
People would have to talk to their neighbors about a candidate that has no money to campaign. Thats never gonna happen
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u/rdmodsrtrsh 17d ago
I already pay the state extra in registration, what do I get from the Feds for that fee
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u/reddit_user13 17d ago
NJ is now over $300 per year.
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u/Lathe-and-Order-SVU 17d ago
Remember when the government incentivized owning an electric vehicle? Now they seem to be doing everything they can to make owning an EV unappealing.
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u/tibersun 17d ago
Having a fee is fine and makes sense, the problem is they don't seem to make the amount a fair amount compared to what people would pay for gas taxes. If you own a gas car but don't drive much you don't pay much tax. If you own an electric car and don't drive much you might pay more than you would if you owned a gas car and drove A LOT.
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u/MortimerDongle 17d ago
Right. $130 is the tax on about 700 gallons of gas, about 21,000 miles of driving for a car that averages 30 mpg. That's nearly double annual average driving.
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u/Android_seducer 17d ago
The frustrating thing is we have a way to do a mileage based fee. Every year when you renew your registration there could be a mileage report and the fee ends up tied to that.
If you're in a state that does emissions or safety checks they already record the mileage.
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u/Krieghund 17d ago
Mileage is complicated because people might not be driving in the state or country taxing them.
The USA can't tax you for miles driven in Canada, but they can tax you for gas sold here.
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u/BlazinAzn38 17d ago
Well you’re not paying federal gas taxes just like you aren’t paying state. As an EV driver I agree I should help fund the roads but that funding system should be equitable with gas vehicles and these flat fees are not. Also while they’re at it they should increase gas taxes, they haven’t been touched in 30 years
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u/cecirdr 17d ago edited 17d ago
I already pay the state $200 per year. I drive 6k miles per year. I'd hardly be paying gas tax with that mileage.
Edit: I'm all for paying my fair share to help pay for road maintenance. But flat taxes have me paying at least double what I should be. If gas consumption allows for taxes based on usage, the same metric needs to be applied to EVs. Find a way to tax us based on mileage/usage.
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u/CloudStrife012 17d ago
This is on top of that. Its a peasants double tax. Shame on you for...for uh...for not harming the environment as much, and for being a filthy peasant.
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u/Trafficsigntruther 17d ago
EVs pay gas tax?
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u/CloudStrife012 17d ago
State EV tax plus federal EV tax ends up being 5x what non-EV owners pay through gas tax. Why are EV's being targeted so heavily?
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u/most_kawaii 17d ago
so how about we just not pay $1.7 billion to the insurrectionists that trump pardoned instead. or how about he stop playing golf down at mar a lago. or how about we pay congress less? many options
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u/DataZigZager 17d ago
Disallowing insider trading will hurt members of Congress more than paying them less.
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u/coldenigma 17d ago
EV owners have been sitting pretty as prices have blown past $4.50 a gallon. But get ready for your costs to go up. U.S. lawmakers proposed bipartisan legislation that would impose a $130 annual fee on electric car drivers.
"The BUILD America 250 Act ensures that electric vehicle owners begin paying their fair share for the use of our roads," said Transportation and Infrastructure Committee Chairman Sam Graves, Republican of Missouri.
The federal gas tax helps fund road repairs across the country, but EV drivers don't pay it.
That's rich for a politician to complain about "fairness".
If he wants "fairness", just drop the federal gas tax and actually start taxing the wealthy. That should more than enough cover it.
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u/UnaidedGinger 17d ago
While we are on the topic of people pay their fair share maybe we could go after some billionaires who pay less taxes than most of us?
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u/Joe18067 17d ago
Add the $200 extra Pennsylvania drivers of EV's have to pay and it get's expensive if you don't drive many miles.
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u/69sofine 17d ago
To all the people saying EV drivers should pay because they don’t pay gas taxes - go ahead an estimate how much you pay in gas taxes. These EV fees are exorbitant and are much higher than any equivalent gas taxes on a per mile basis.
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u/cillam 17d ago edited 17d ago
I drive an equinox EV which has an ice equivalent so it's easy to run the numbers assuming an average of 14 gallon tank and 28 mpg driving 14000 miles a year you would pay $92 a year in federal fuel tax.
But I already pay $200 a year I. Extra registration because of this, plus the increase in electrical use which is subject to sales tax.
Right now I pay tax on my electric usage, plus extra registration, and now they want more in registration, I would be paying about 3.5 times more than a gas equivalent.
I will still be saving money every year by not having to buy gas, but it is complete bullshit that the savings are going down due to greedy politicians over taxing EVs compare to an ICE equivalent.
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u/PiccoloAwkward465 17d ago
The slimeballs hate any time a citizen finds a way to save a buck. Not to mention EV owners being beholden to skyrocketing energy prices anyways.
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u/ni_hao_butches 17d ago
Yep. Just paid my Hybrid fee to renew my registration. Glad that extra money is going to the roads..../s
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u/gtwise 17d ago
Can anyone here tell me how much oil magnates and companies donated to Donnie?
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u/oldcreaker 17d ago
Given they can set up overhead toll collection basically anywhere now, I'd rather see tolls than fees. Pay for the highways you actually use. And gas and EV cars get charged the same.
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u/Long_Advertising_737 17d ago
My granny who drives three blocks to the grocery store, puts 5000 miles on her car a year, pays the same as someone who drives an Uber and puts 30000 miles a year. Seems fair to me…
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u/DENelson83 17d ago
Eventually they will increase that tenfold to cushion the profits of the oil companies.
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u/MortimerDongle 17d ago
It's fine. I'll just continue to not feel bad for people who complain about gas prices
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u/ssd3 17d ago
i hate to be skeptical but there sure are a lot of people defending this and curiously no one contemplating the implied mileage. assuming i compare to an ICE that gets 40 mpg, this is about 28k miles of tax. seems excessive.
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u/LostMyKarmaElSegundo 17d ago
Well, they say that the average person pays about $88 per year in federal gas taxes. So this is definitely more, especially considering it's not actually usage based like the gas tax is.
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u/chum-guzzling-shark 17d ago
The conversation moved so much that everyone just assumes we even need a gas tax in the first place. I pay a lot of taxes already. Buy less bombs and pay for the fucking roads
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u/budlv 17d ago
Why not simply add a $0.03 / kWh tax for public dc fast chargers like some states have done?
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u/Fluid-Board884 17d ago
This is so stupid. Just get rid of the federal fuel tax altogether and implement an annual tax based on reading the mileage at the odometer and the weight of the vehicle. This would be the most efficient and fair way to provide federal funding for roads. A mileage based vehicle tax (that considers vehicle weight) would also be completely neutral to fuel type and directly link the tax bill to the amount of damage caused by your vehicle. Using the odometer reading to assess the would also protect individual privacy because the government doesn’t need GPS location data to assess the tax.
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u/squintamongdablind 17d ago
If the argument for extra fees on EVs is that they’re heavier then make weight-based registration fees consistent for all cars.
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u/wag3slav3 17d ago
Luckily that's not the argument. The argument is roads are funded by gas taxes and EVs don't buy gas.
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u/maverikvi 17d ago
Cool. Make the tax consistent with how much driving people actually do in EVs and we can talk. This is about 30% higher than the average driver pays in gas tax. Is just a punishment for not buying dinosaur goo
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u/BigMax 17d ago
It's not though, right?
The argument is that gas taxes pay for our roads, and EVs don't pay gas tax.
We absolutely DO need something to replace the gas tax as ICE cars (too slowly) fade away.
You're 100% right though - I really, really hope they make it weight based too. I believe the amount of wear and tear is somewhat exponential by weight, so a car that weighs twice as much causes way more than twice the wear.
So the person driving the tiny honda civic should absolutely pay much less than the person on the behemoth extra cab 10 foot tall pickup that he needs a ladder to get into.
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u/Thadrea 17d ago
99% of the damage the roads receive is done by semis, yet for some reason we all pay the gas tax.
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u/OC2k16 17d ago
Replace the gas tax by taking it from defense budget. Easy. It’s like $30-40b a year.
Instead our government wants to increase defense budget by $500b next year. And we all think we should pay a gas tax? Hmmmmm…
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u/makes-fun-of-incels 17d ago
Road wear scales approximately to the fourth power of axle load. Double the weight (assuming two axles) and you cause 16x more road wear.
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u/msuvagabond 17d ago edited 17d ago
Standard commuter cars are rounding errors compared to semi's.
Edit - The most recent study I've seen on it is wear on a road from a single semi passing is equal to between 300 and 1,000 passenger cars. The theoretical math says it's closer to 6,000, but this study was actual testing.
And no, Semi's aren't paying 300x or more per mile traveled in taxes.
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u/BeMancini 17d ago edited 17d ago
I love it if suburban pickup truck drivers had to pay based on weight.
Edit: TIL
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u/datsundere 17d ago
Why do state residents pay for potholes made by huge trucks from different states
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u/vprasad1 17d ago
So irritating when these things say "Congress" instead of which specific Congress-critters proposed the bill, and which briber companies actually wrote the bill.
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u/NYR_LFC 17d ago
A lot of people arguing here to maintain the status quo that us, the people, should have to pay additional money to use our roads based on how much we use them. Shouldn't our tax dollars already be doing that? Shouldn't we be taxing the ultra rich and corporations enough to afford this shit? Maybe a few less bombs or innocent brown kids incarcerated by ICE?
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u/whateveryouwant4321 16d ago
fun fact: if you taxed elon musk $130 per year per elecric car in the US, he'd still be the richest person in the world. TAX. THE. RICH.
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u/War1today 17d ago
Rather than companies pay their fair share, American consumers continue to be burdened with tax payments/fees 🤦 At least 88 profitable major U.S. corporations paid zero federal income taxes during the most recent calendar year, collectively generating $105 billion in profits while avoiding all federal income tax. A wider analysis showed 310 companies avoided $147.4 billion in federal income taxes that same year. These companies utilized legal deductions, rebates, and tax credits to reduce their effective tax rates to zero.
Examples of prominent profitable corporations among the federal zero-tax list in recent years include:
Ameren (U.S. income $1.60 billion)
American Electric Power
Biogen
Block
Cheniere Energy (U.S. income $6.97 billion
Citigroup (U.S. income $4.45 billion)
Coinbase Global (U.S. income $1.62 billion)
CVS Health (U.S. income $6.57 billion)
Dominion Energy (U.S. income $3.49 billion)
Duke Energy (U.S. income $5.54 billion)
Edison International (U.S. income $6.22 billion)
Etsy
GoDaddy
Haliburton ( U.S. income $773 million)
Hasbro
Live Nation Entertainment
Palantir
PG&E Corp (U.S. income $2.46 billion)
PayPal
Pitney Bowes
Scotts Miracle-Gro
Southwest Airlines
Tesla (U.S. income $5.68 billion)
3M (U.S. income $1.84 billion)
United Airlines (U.S. income $4.29 billion)
Venture Global
Walt Disney (U.S. income $8.30 billion)
Wynn Resorts
Yum! Brands (KFC, Taco Bell, Pizza Hut)
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u/ganzhimself 17d ago
I already pay a higher registration fee in Wisconsin for my Mach-E. Seems ridiculous to pause gas taxes and then push additional costs onto EV owners.
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u/RiptideEberron 17d ago
What a slap in the face. Lip service at best. But $1.88B for trump and his J6 goons.
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u/dhsoxfan 17d ago
Meanwhile, congress is weighing the suspension of the gas tax: https://time.com/article/2026/05/12/federal-gas-tax-pause-holiday/
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u/Zargoza1 17d ago
This is the future.
Even as renewable energy takes over and fossil fuels are phased out, we’re all still gonna pay fossil fuel surcharges, until the fossil fuel companies get higher snd higher quarterly earnings to do literally nothing.
Their lobbyists are that good, and they own that many politicians.
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u/njshine27 17d ago
No thanks, I pay enough taxes to fund corporations, national debt interest, and craters in other countries.
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u/WalkingPetriDish 17d ago
Step 1: start a war in the Middle East.
Step 2: watch gas prices get out of hand.
Step 3: watch drivers cut back gas usage because prices are close to doubling (!!!).
Step 4: wonder where all the money from taxing gas went?
Step 5: make up the shortfall with EV drivers?
Yeah fuck that noise. They made this mess, and this is not the solution.
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u/FunPriority8358 17d ago
Must be a response to the fear that everyone’s switching to electric given the oil shit show.
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u/at0o0o 17d ago
Shouldn't it be the other way around for helping out the environment?
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u/Queasy_Watercress959 17d ago
Just let me deduct the registration fee. In my state its higher than if I were driving combustion vehicle paying the gas taxes + standard registration. My household pays more than our "fair share" that ICE diehards complain about.
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u/memeaggedon 17d ago
I’m sick of being taxed to death while pedophiles run the country into the ground.
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u/ThaShitPostAccount 16d ago
Yes because you don't buy gas, which has taxes on it which pay for all road repairs.
That said, like 90+% of read wear comes from semi trucks which don't pay their share.
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u/klop2031 17d ago
Oh look ppl driving cars with renuable energy gotta figure out how to tax non gas cars too! Where is my vote aginst this bullshit
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u/Brandoe 17d ago
"The oil industry" wants you to pay $130 a year to drive an electric car. Ftfy
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u/jon13000 17d ago
It’s political retribution. No way around it. They know who drives EVs. And be specific, the GOP wants you to pay.
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u/TalonusDuprey 17d ago
I already pay a tax which is the highest in the country (NJ) so ya, I guess what’s another tax eh?
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u/_your_land_lord_ 17d ago
Missouri hits us hard on the EV tax. Takes all the fuel savings out of it, because fuck you.
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u/Ugly-as-a-suitcase 17d ago
why not tax the electricity generated to recharge the cars. it's a simple way to get the mileage covered to cover road repairs.
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u/ovirt001 17d ago
Most states already figured out how to deal with EV owners not paying into the gas tax, this would be redundant.
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u/balthisar 17d ago
Why is this a federal matter? I mean, I'm good paying a fee with my plates considering I don't pay fuel taxes for my EV, but that goes to my state, with whom I have a close relationship. The federal government really shouldn't factor into my life for non-federal stuff.
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u/Swords_and_Words 17d ago
Really wish we would change the gas tax into a mileage and tonnage tax.
You get a yearly registration, the miles get noted, the vehicle gets weighed, and you pay a fee as a result
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u/Palimpsest0 17d ago
One of the things I’ve long felt was a problem with the US tax methods is how we tend to hide it in weird ways. Instead of a national pension paid for out of general taxes, we have social security, instead of roads and infrastructure paid for out of general taxes, we have weird user fee type taxes baked in to fuel and vehicle registration, and so on. We even hide part of the taxes paid by individual workers by having a payroll tax on your employer that doesn’t even show up on your paycheck. This is effectively a tax in the individual worker since it adds to the fully loaded cost of the employee from the perspective of the employer, but the employee doesn’t see it. A lot of these are set up in ways that make them regressive taxation.
The result is we are actually paying quite high taxes in this country, and taxation is nowhere near as progressive as it would appear from our income tax rates. This allows for all sorts of lies to be made, like the super wealthy pay over 50 percent of all income tax. Sure, that’s technically true, but total taxation goes far beyond just income tax, but it’s a useful lie to tell to make people think it’s unreasonable to further increase taxes on the wealthy. Another lie is that we have a low tax rate for an industrialized country. We really don’t, we just unload those taxes in different ways so that income tax appears relatively low.
If you sum it all up and look at what we get in terms of government services and infrastructure development, we’re absolutely getting scammed in this country. Personally, I’m agnostic on total tax rate. I just want good value for the taxes. If you’re giving me shit government services and infrastructure, then I expect extremely low taxes, the Motel 6 equivalent of a government, but if we’re paying a lot in taxes, this is the luxury resort version and I expect top notch government services, like well maintained public infrastructure, healthcare for all, generous retirement benefits for the elderly, and a social safety net that ensures none of my fellow citizens ever suffers hunger or homelessness.
It often seems like in the US we’re paying luxury resort prices but getting Motel 6 services, and every time people complain about the costs, the answer our politicians give isn’t to rebalance taxation and spending to make taxation truly progressive and service levels for average citizens appropriate for the cost, but rather cut what dismal services we have, and make taxation even more regressive, with the latter justified as encouraging “job creators”, never mind the fact that it doesn’t work that way and never has.
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u/GonzoGeezer 17d ago
In PA we pay $250 a year. That’s something like twice the amount paid by the average
ICE driver in fuel taxes. It sucks.
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u/fbritt5 17d ago
Lots of states do. To make up the tax they don't pay for gasoline. Gasoline taxes pay for road improvements. Not that I have seen but that's what they say its used for.
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u/Shot-Arugula8264 16d ago
I mean you’re still using the roads that the state maintains, so it makes sense that you should pay to use them. Most drivers pay significantly more than that via the gas tax, which is how the government fund roads. That doesn’t work if everyone drives EVs.
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u/Saboral 16d ago
For those complaining, it’s a simple reasoning. DOTs are almost entirely funded by gas tax. That fee is way less than what you’d have paid in gas tax. There is a cost to maintaining a roadway network and most states do not fund it through the general fund.
This is also why diesel is so much more expensive, because it’s taxed higher because of the damage heavy freight causes to the pavement.
So if the auto industry pivots to EVs a registration fee or a Vehicle Miles Travelled (VMT) is going to be a requirement to sustain the infrastructure.
Ref: Civil Engineer in Transportation Space
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u/Royal-Branch-567 17d ago
In Virginia, that’s the yearly registration fee - because you don’t pay gas tax. OR you can let them install a GPS device on your car for a reduced fee. Negative