This tax will cause a return to old vehicles and higher levels of greenhouse gas pollution. I am sure the petroleum industry loves it.
For those stranded because they can't or won't pay the 'use tax' there needs to be public transportation to fill in the gap. Hello? You want your independence from Wall Street? Ride the bus.
Published time: October 28, 2013 10:40
...Maintaining roads (click here) in America currently relies on a gas tax, which is paid by motorists as they fill their tanks at pumps. However the cash flow is steadily drying up as cars become more fuel efficient and with authorities reluctant to raise tax rates. The advancement of hybrid and electric cars is also causing this means of taxation to be perceived as unjust.
Taxing per mile is one possible solution, however, the federal government is reluctant to proceed with it. A $90-million pilot project involving some 10,000 cars was approved by the Senate two years ago, but was axed by the House.
But some states are more enthusiastic. For instance California is planning to tax every motorist in the state by mileage by 2025, reported on Saturday Los Angeles Times.
“This really is a must for our nation. It is not a matter of something we might choose to do," told the newspaper Hasan Ikhrata, executive director of the Southern California Association of Governments. "There is going to be a change in how we pay these taxes. The technology is there to do it."
Oregon so far is the most eager. It launched a pilot vehicle miles traveled (VMT) tax project as early as 2007 and currently has 5,000 cars taxed by their mileage in a follow-up experiment. A similar if smaller-scale test was conducted in Nevada, and New York City is considering one...
Meet Progressive's Cash Flo. Progressive Insurance already reaches into their customer's pockets through a device called "Snapshot." The initial rollout of this device promised up to 30% savings on car insurance with one month (30 days) of device record. I doubt there are many customers that actually realized the 30% savings. The equation to that 30% is loaded against the customer. The consumer is given 30% discount then receives subtraction from that goal as the device reports back to the company.
"Snapshot" is a plug in computer device that records the activity of the vehicle through monitoring rotation of the drive wheels and braking force regardless of lack of collision.
The driving record is thrown out when "Snapshot" is deployed. Literally, Progressive can take a driver enjoying low rates because of a spotless driving record and turn them into a driver with far higher risk than ever believed by any underwriter.
The customer is told they will return the device for evaluation of their discount. The device actually is connected to a satellite that transmits the recorded information directly to the company on a continuing record. The device is a telemetry device, not a recording device.
The formula Progressive uses defeats the viability of low insurance rates. The device returns road speed, rate of acceleration and rate of braking into the cost of insurance. If the braking occurs abruptly (normal is defined as 10 mph decrease per 8 seconds) the computer sends an audible signal to the drive to alert them they have exceeded the limits of the benefit of the discount. Any axle rotation faster than what is expected in acceleration with 'normal' driving experience is also detrimental to the discount. So, if a driver lives in the northern end of the USA and the tire rolls over an ice patch that causes the axle to accelerate for a brief period of time, the discount is effected.
The audible tone to the device is to create BEHAVIOR MODIFICATION of the driver to improve what Progressive dictates as 'the safe driver.' Supposedly the more the driver modifies their driving behavior eventually they will receive the benefit of that achievement. Why does driver behavior enter into this? Because Progressive offers the driver the opportunity to continue to achieve the 30% discount by leaving the device in the vehicle FOREVER. As a matter of fact, the driver has to notify Progressive before removing "Snapshot" otherwise they receive a penalty to their insurance rates.
"Snapshot" is not only a draconian tool to punish drivers, it is a method of achieving marketing and underwriting standards. Once again, the American consumer is a fool by design of Wall Street.
