Government revenues are sacred. No matter what happens in the greater economy, they must not be negatively affected. Families tighten the belts, businesses cut costs, but governments find new ways to tax.

That is why, after a sluggish economy and high gasoline prices caused consumers voluntarily to seek ways to reduce their consumption through driving less, buying fuel-efficient cars, carpooling, etc., which has negatively affected gasoline excise-tax revenues, there is talk in Raleigh of a VMT tax in addition to the excise tax (as opposed to, say, reforming the misuse of present tax revenues).

A bad idea in government spreads like a virus; it’s no wonder the AP reports today that


Motorists are driving less and buying less gasoline, which means fuel taxes aren’t raising enough money to keep pace with the cost of road, bridge and transit programs.

A federal commission created by Congress to find a way to make up the growing revenue shortfall in the program that funds highway repairs and construction is talking about increasing federal gas and diesel taxes.

A roughly 50 percent increase in gasoline and diesel fuel taxes is being urged by the commission until the government devises another way for motorists to pay for using public roads. …


As it wasn’t in NC, one can expect that waste of highway revenues at the federal level (which must be several levels greater than in NC) won’t be addressed at all (the act would itself imply the existence of waste, making it anathema for any federal budgeteer worth his salt to rent seekers).

As is my wont (see examples here and here), I have provided a handy chart to help consumers understand the relationship discussed here: