Why do we keep getting the price of driving wrong?

  • April 4, 2023
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For years I have railed about the need to get the price of driving right (too many posts to find and link, but here’s a good one). Why, oh, why I cry, do we still keep finding needlessly complicated ways to confuse the f*** out of drivers who just want to do the right thing, but can’t figure out the real cost of driving gas versus electric?

Ohio makes it especially taxing (see what I did there?):

Why it matters: Our gas tax rate is among the highest in the U.S., with the proceeds funding infrastructure needs like road and bridge maintenance.

Yes, butAn increasing number of EV drivers avoid paying this tax by not paying for gas, an issue for Uncle Sam since the cars wear down public roads like everything else.

Ohio’s solution: Annual registration fees of $100 for hybrids and $200 for any plug-in EV.

I’m not opposed to a tax on EVs. They do create some externalities (congestion, electricity generation, infrastructure wear-and-tear), but I am opposed to arbitrary fees that distort the relative costs of gas vs EV. 

Let’s talk to some economists and get the prices right, then let consumers make there decisions.

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