The problem with that line of reasoning is that most products (and raw materials) are shipped via equipment that needs taxed fossil fuels. Increases in fuel prices, either through crude surging in price in the commodities markets or via increased taxes at the pump, is inflationary. Economists in a number of countries are now saying that oil price increases in 2007 and 2008 played a significant role in the current recession. Given the current pump prices in the US, we're positioned to see $4.00 a gallon prices this summer, if not higher. If that happens, don't expect to see the recession end anytime soon. In fact, I would expect an upward tick of job losses again. What Congress is considering in lieu of the gasoline tax is a road usage tax. Don't expect to see it enacted in an election year but, for several years, the University of Iowa has been running a demonstration project for Congress somewhat similar to road tax systems used by some European countries. Your vehicle will have to be equipped with a computer board with GPS. It will record the actual number of miles you drive and upload it directly to government servers. You will then be issued a tax bill. The demonstration project has advanced enough to prove that the technology is reliable. It's now up to the politicians and bureaucrats to determine the per-mile charge and the frequency of the tax billings (probably won't be annual, but maybe quarterly).