October 29th, 2013
10:38 AM ET

Could You be Taxed Per Mile?

Imagine paying your taxes by the mile—the government charging you based on how far you drive instead of your gas purchases.

A pilot plan in Oregon is planning to do that to raise taxes for roads.

It’s also raising some eyebrows because the idea has some people concerned about their privacy.

“The state says they'll have different ways to do this,”  CNN Chief Business Correspondent Christine Romans explains.

Some plans are considering using odometers, others GPS.

Starting in two years, it will be voluntary.

“They want to test to see if this is a way for the state to raise more money for tax revenue to fix bridges, roads and the like,” Romans reports.

Comparing the gas tax to the mileage tax, the typical driver would be paying more.

“We haven’t raised the federal gas tax in 20 years. There are 16 states that haven’t raised their state gas tax in 20 years, so they’ve got to come up with the money.”

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