I'm not really sure there's a good answer here. Fuel tax is 43 cents a litre. Australian cars right now avg about 13.1 litres per 100km. So you're looking at ~$5.6 per 100km for fuel tax. This tax is adding $2.5 tax per 100km for electric. Right now, EVs are absolutely creating an regressive tax situation with regards to fuel. Those who can afford to buy newer, efficient cars can usually save money on tax over those…
Taxing milage directly seems to have worse distribution properties than taxing gas. Here is what I mean: Suppose I am driving from New York to Alaska; I fill up my car with gas then drive into Ontario. I have now paid New York a gas tax but I'm driving on Ontario roads; Ontario gets paid nothing for this wear and tear.. until I run out of gas inside Ontario. Then Ontario gets their cut. This continues all the way unt…
There are places in the US where people live in no-income-tax states but shop across the border on no-sales-tax states. This is obviously an abuse, but it's never been enough of a problem to really crack down on.
If we can reduce our problems to known problems that aren't a big deal, that's good enough! Ship it!