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Living in California, I've heard this discussed for a few months. The key point always keeps coming back to a way to keep tax collections up. Before they go there, they are going to have to deal with one big issue.
California has one of the highest state taxes on gas in the nation. But, they keep taking money out of the transportation system to balance the budget. They did this before we had a huge budget problem. It's just another source of money for the General Fund.
So, if they tax based on mileage, how do they assure that the funds will be used for that maintenance, repair and upgrades? There is no history that it has ever happened before.
Until they can convince the electorate that will happen, the new tax system won't stand a chance. California voters have a history of passing initatives that override what the politicians want to do. That's what the Governator relies on to threaten the Legislature today.
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