File this with my previous “Can a tax do two jobs at once” posts. The increases in state gasoline taxes around the country were partly driven — many claimed — to get people to move toward more fuel efficient vehicles. And, in many cases, the increases were meant to raise some revenue for states.
So what happened? In Oregon, people did move toward more fuel-efficient vehicles and revenue from the gas tax dropped.
What to do? Oregon is now considering changing the state’s gas tax to a tax on miles driven, rather than on gasoline consumed.
The Associated Press reports that Congress, too, is thinking about adopting the plan Oregon is considering, which includes a GPS monitor in some cars.