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The Netherlands just decided to revamp their car tax. First the taxes on the acquisition of cars, currently 25% of the sales price) and the yearly car tax are scrapped. This is replaced by a base tax of €0.03 per driven kilometer, an amount that is increased for gas-guzzlers, heavy vehicles and rush-hour traffic. Distances and times are determined by GPS in every vehicle.
I absolutely love this system. It is almost exactly how cars should be taxed. The current system does not penalize enough for the externalities of driving (pollution, road wear and congestion) because the marginal cost is fixed (not zero, because there is also the gas tax). This system allows to vary the cost according the intensity of the externality. Only small flaw I see: one should still have a periodic tax on cars, to account for the public space they take by being parked. Or even better, have parking fees levied by GPS as well.
Saturday, November 14, 2009
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3 comments:
What about creating a GPS infrastructure where the government can basically track every movement of every resident?
I also wonder about the GPS database. But thinking about it, anybody who has a GPS is already providing such data, but to a private company that is not controlled. Between an uncontrolled private company and a government that has, I supposed, put all sorts of safeguards in place (or the law would not have passed), I am for the government.
GPS navigation is voluntary, though. This is mandatory. And it doesn't replace GPS navigation from private vendors, it just exposes you to yet another set of interest groups (e.g. law enforcement). And don't forget that GPS is a US military system, so the number of groups with access is probably much higher...
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