The Social Security Trust Fund is running low and may not have enough income to to pay the expected outflow and it will then need to start reducing payments such that income and outflow balance. Sometime in the 2030’s is projected.

Currently an employee contributes 6.2% of income up to $160,200 (in 2023), with the employer matching that 6.2%. If they really can’t get rid of the cap on the employee’s side of the equation, why don’t they get rid of the cap on the employer’s side and let them continue to contribute 6.2% of income with no cap? That should put a bit more money into the trust fund.

Some Fast Facts & Figures About Social Security.

I heard a story the other day about how states are looking at ways to tax EV to pay for the road taxes they no longer collect on the lost gasoline sales. There is also the issue of declining gas tax revenues because of improving fuel efficiencies without the reduction of the wear and tear on the roads themselves. Some of the ideas included charging an EV tax on annual registration renewal or taxing at the charging station (but if you charge at home and not at a charging station, no taxes?)

Why not just tax the tires? Add a certain tax based on the expected mileage of a set of tires. The actual usage of the roads will be captured by how often the tires are changed.

If we look at consider the average car gets @ 16 MPG and the gas tax is $.18 per gallon then the average tax is $.01125 per mile. So a set of 4 -40,000 mile tires would be taxed $450. A set of 60,000 mile tires would be taxed $675.

Heavy Duty Vehicles and their tires can be taxed at a different rate since the heavier vehicles put more where and tear on the roads.

It might be easier to collect the tax at the annual registration time and ignore the difference between the the folks that only put 3,000 miles a year on their cars and those that put 30,000 miles a year on them. If we assume the average car is getting 12,000 miles a year, then an average $135 a year can be collected in the registration fee.

All this is in lieu of the gasoline tax and could be applied to all types of vehicles. Although the registration tax could just be used for EV and gas taxes can stay until the last pump dies.

I forget though. The $.18 gas tax is the federal tax rate. The same process can be used for states gas taxes to add on to the figures above.

I see that the average State Gas Tax is $.31 per gallon. That comes to $ .019375 per mile additional state tax and a total of $.030625 per mile combined Fed and State Taxes. Tire taxes would be $1225 for a set of 40,000 mile tires and $1837.50 for a set of 60,000 mile tires. I can see that would cause a bit of sticker shot for the consumer. The registration cost, using 12,000 miles as the average, is $367.50 per year.

If there was a way to spread out the tire tax over a period of years, it may be a more appropriate way to tax for actual road usage. Those of us who only drive 5,000 miles a year will only be getting new tires every 10 years or so. (Do tires actually last that long?) Or maybe a combination of registration tax and tire tax such that it isn’t such a big hit at once.

Either way, the EVs do need to pay their way for road maintenance.