A simple shift in the way vehicle taxes are assessed would shift them from a car's value to its use, raising the same money while reducing congestion and pollution. I say that not for any of the reasons cited by its opponents. Rather, I say it because a different reform of the motor vehicle excise tax would turn it into a powerful therapy for our transportation ills.
Tax codes are the DNA of our economy.
Invisible, cryptic and awesomely powerful, they change the prices of almost everything in the marketplace, influencing the decisions of millions of consumers and businesses. A new approach to tax reform, called tax shifting, has emerged in Europe. The government of British Columbia is actively considering following suit, and two blue-ribbon policy panels in Oregon have recommended tax shifting to the state legislature. In Washington the idea remains a novelty, but the wake of Initiative 695 is a perfect opportunity to give it a road test, and the motor vehicle excise tax is as good a place to start as any. Rethinking vehicle taxes Traffic and related transportation woes are among our most pressing economic and environmental problems.