Why do we pay car tax when it could be put on the fuel price that way people who use the road more will pay ?
Answers:
Two different kind of taxes. Your correct, people that drive more, pay more in taxes through the fuel and that is fair. But don't you also think it is fair to pay sales tax based on the price you pay for the car, not how much you drive it.
By using your suggestion, If I purchased a 95,000.00 vehicle and didn't drive it much, but you purchased a $1,000.00 car and drove it every day, you would pay more sales tax than I. Fair?
b/c that's the way the govt works, unfortunately.
1. because it goes to the state for funding state programs
2. we already pay an exorbitant amount of tax on gas
It's sales tax and you have to pay it on any purchase in most states. The sales tax in each state is set aside to pay for certain items, where the gas tax pays for something else.
It also means that the government have checked that you have insurance and an MOT.
Because in the long run consumers would pay double for products. The big trucking and shipping companies use a lot of fuel. A common busines also uses a lot of fuel for travel and certain deliveries. The airline rates would also go up because of higher fuel costs. SO you would be paying at the pump but your normal products will also go up.
Sales Tax (car Tax) is State regulated. Fuel Tax is mostly Federal (though some states have them too). Those Federal taxes are then distributed to states and local governments to maintain the highways. State sales tax goes to the states general funds. There are some other taxes such as title transfer, etc. that vary from State to State, but the main one is Sales Tax.
Interstate and Intrastate truckers pay different taxes based on mileage.
The answers post by the user, for information only, UKQnA.com does not guarantee the right.