As fuel efficiency has increased, gas taxes have declined. California considers an alternative tax on mileage rather than gasoline.
"It's a looming problem as hybrids become more popular, and Gov. Arnold Schwarzenegger's government-reform commission has come up with a solution: Tax motorists based on the miles they drive, not the amount of gas they consume.
...But it's not at all far-fetched. Oregon will do a test run of such a "vehicle- miles traveled" system next year.
...The proposal here raises a number of concerns: One is that it could discourage drivers from buying fuel-efficient cars. Another is that it could open the door to state surveillance of motorists."
Thanks to Slashdot
FULL STORY: Mileage tax proposed for state's drivers
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