Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

DonViejo

(60,536 posts)
Fri Mar 26, 2021, 11:02 AM Mar 2021

White House considers vehicle mileage tax to fund infrastructure, Buttigieg says

Source: CNBC


PUBLISHED FRI, MAR 26 202110:29 AM EDT UPDATED FRI, MAR 26 202110:54 AM EDT

Thomas Franck
@TOMWFRANCK

KEY POINTS

Pete Buttigieg, the transportation secretary, said that the White House is weighing a mileage tax and special bonds to fund infrastructure.

He argued that President Joe Biden’s forthcoming plans to rebuild U.S. roads, bridges and waterways would lead to a net gain for the U.S. taxpayer.

“I’m hearing a lot of appetite to make sure that there are sustainable funding streams,” Buttigieg said. A mileage tax “shows a lot of promise.”


Pete Buttigieg, the transportation secretary, said Friday morning that the White House is weighing a variety of ways to finance what’s expected to be its multitrillion-dollar infrastructure proposals.

Buttigieg, who spoke with CNBC’s Kayla Tausche, also argued that President Joe Biden’s forthcoming plans to rebuild U.S. roads, bridges and waterways would lead to a net gain for the U.S. taxpayer and not a net outlay.

“When you think about infrastructure, it’s a classic example of the kind of investment that has a return on that investment,” he said. “That’s one of many reasons why we think this is so important. This is a jobs vision as much as it is an infrastructure vision, a climate vision, and more.”

He also weighed in on several potential revenue-generating options to fund the project. He spoke fondly of a mileage levy, which would tax travelers based on how far they travel instead of on how much gasoline they consume.



Read more: https://www.cnbc.com/2021/03/26/buttigieg-says-white-house-is-weighing-mileage-levy-to-fund-infrastructure.html

96 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
White House considers vehicle mileage tax to fund infrastructure, Buttigieg says (Original Post) DonViejo Mar 2021 OP
For many areas of the country that will be a regressive tax on those least able to afford it hlthe2b Mar 2021 #1
Most definitely qualms. hamsterjill Mar 2021 #2
The Coffin Makers Grave Diggers And Fire Fighters Are Hiring DanieRains Mar 2021 #13
Regressive tax people Mar 2021 #11
Exactly. And how will it be structured - it's 45 miles from my home in San Jose to my job in iluvtennis Mar 2021 #32
It certainly was an issue for me when I worked in Boston MissMillie Mar 2021 #59
Worried. pazzyanne Mar 2021 #18
That was my first thought. ananda Mar 2021 #38
Yes, it's a regressive tax, just like taxes on gasoline and diesel. JustABozoOnThisBus Mar 2021 #41
You would only think that if you lived on the East Coast & had no clue of the distances in the West hlthe2b Mar 2021 #42
I don't know why there's a surprise. Road infrastructure has been partly paid through fuel tax ... JustABozoOnThisBus Mar 2021 #46
Fairer only if you are oppose climate change intervention. hlthe2b Mar 2021 #50
Do you really think this would be a replacement for current gas taxes ? MichMan Mar 2021 #77
Yes, it adds a regressive tax on top of existing regressive taxes. JustABozoOnThisBus Mar 2021 #78
A mileage tax makes perfect sense Miguelito Loveless Mar 2021 #3
See post #18 above. nt pazzyanne Mar 2021 #19
If at some point Miguelito Loveless Mar 2021 #29
Thanks for the information, Miguelito Loveless. pazzyanne Mar 2021 #63
No, it is a regressive tax that will hurt the already struggling middle class and the poor. Demsrule86 Mar 2021 #89
I like Bernie's tax increase on the rich proposal better Fiendish Thingy Mar 2021 #4
Oh brother! NurseJackie Mar 2021 #5
The 1% Has 50 Trillion They Basically Stole By Using A Corrupt System That Has The Poor DanieRains Mar 2021 #14
How exactly did they "steal" that $50 trillion? George II Mar 2021 #54
I know you're anti-everything Bernie, but in this case, as chairman of the budget committee Fiendish Thingy Mar 2021 #15
That's not true. I haven't attacked you personally... please refrain from doing that to me. NurseJackie Mar 2021 #20
I guess we just see things differently Fiendish Thingy Mar 2021 #28
No, I don't. No, it's not a "fact". NurseJackie Mar 2021 #37
Note to Jackie: if one says it's not something, rest assured that it is. George II Mar 2021 #60
Truckers already pay... 2naSalit Mar 2021 #33
This is something the SECRETARY OF TRANSPORTATION and PRESIDENT are considering. George II Mar 2021 #43
It's a binary view of how the government raises money to do the things that governments must do. NurseJackie Mar 2021 #57
Note the headline: "White House considers vehicle mileage tax".... George II Mar 2021 #58
interesting idea however I fear how it will effect Truck Drivers. Corporations PA_jen Mar 2021 #6
Only those who are owner operators... 2naSalit Mar 2021 #36
More regressive taxes. Can we stop taxing the poor to fund everything? AZLD4Candidate Mar 2021 #7
How is this already being decried as "taxing the poor"? Do you know details about it that even.... George II Mar 2021 #44
It is based on a consumption tax, which is by definition a regressive tax. AZLD4Candidate Mar 2021 #47
Everything filters down to the poor eventually madville Mar 2021 #82
Sales taxes are all regressive. Consumption taxes usually can't also be claimed on a federal AZLD4Candidate Mar 2021 #83
A really bad idea! Regressive, hurts those most in need and penalizes those who need a car to work. machoneman Mar 2021 #8
A downside for this will be for those in large rural states BumRushDaShow Mar 2021 #9
From what little I've seen about this (it's still in the "consideration" stage) I don't think.... George II Mar 2021 #45
Yeah I expect it was a "trial balloon" that was thrown out there to gauge the sentiment BumRushDaShow Mar 2021 #52
Unfortunately in most states roads have been saturated with respect to tolls, and it's not... George II Mar 2021 #56
Here in PA BumRushDaShow Mar 2021 #61
Wolf should revisit tolling I-80 Deminpenn Mar 2021 #69
That might have a tiny bit less pushback BumRushDaShow Mar 2021 #71
The rural counties that 80 runs through howled when Deminpenn Mar 2021 #72
I had an uncle who was born and raised in Massachusetts BumRushDaShow Mar 2021 #73
LOL! That's a great family story Deminpenn Mar 2021 #74
It makes perfectly good sense when it comes to Electric Vehicles that pay no gas-tax... NurseJackie Mar 2021 #10
Tax Gasoline And Diesel Not Mileage DanieRains Mar 2021 #12
What is the difference between a gas driven car and an electric driven car marie999 Mar 2021 #23
We Need To Incentives Electric Cars And Renewables DanieRains Mar 2021 #27
Electricity derived from fossil fuels is not "renewable" Deminpenn Mar 2021 #70
Then pay me a carbon credit for the CO2 I'm not putting in the air JCMach1 Mar 2021 #91
The point is electricity is also produced from fossil fuels Deminpenn Mar 2021 #94
Dead wrong sorry JCMach1 Mar 2021 #96
"He spoke fondly of a mileage levy" Bayard Mar 2021 #16
Great way to lose Michigan with this DetroitLegalBeagle Mar 2021 #17
Terrible idea Ron Obvious Mar 2021 #21
Tax on the poor Dopers_Greed Mar 2021 #22
Perhaps on breathing? MichMan Mar 2021 #25
Every car would be equipped with a GPS to track people's driving? MichMan Mar 2021 #24
Put the tax on TIRES, the more they wear out, the more you pay bucolic_frolic Mar 2021 #26
That's a great way to encourage tire theft and dumping the old ones by the side of the road. NT mahatmakanejeeves Mar 2021 #35
We have laws against those things bucolic_frolic Mar 2021 #39
Nobody living in poverty,,,, Cryptoad Mar 2021 #30
Yea, fuck that, I commute 60 miles /day Tarc Mar 2021 #31
See my response to #44 AZLD4Candidate Mar 2021 #51
Ridiculous proposal Pete........... Bengus81 Mar 2021 #34
I Work From Home Puppyjive Mar 2021 #40
This will really hurt musicians. BBbats Mar 2021 #48
Easy GOP ad campaigns bashing this idea. sarcasmo Mar 2021 #49
Yeah no Polybius Mar 2021 #53
So the IRS is going to audit my odometer? Shermann Mar 2021 #55
How about a Gun and Ammo tax instead? Talitha Mar 2021 #62
No longer incentivizing fuel efficiency? lostnfound Mar 2021 #64
That's what I was think I was thinking TexasBushwhacker Mar 2021 #81
I'm not a fan of this idea Mysterian Mar 2021 #65
My odometer is not working tirebiter Mar 2021 #66
It will be done with a GPS tracking device MichMan Mar 2021 #76
Hmmm... will The Repubs win 300 House seats or 400 in 2022? WarGamer Mar 2021 #67
How would you even determine this? Deminpenn Mar 2021 #68
Order the states to make everyone to install GPS tracking in order to renew plates. MichMan Mar 2021 #75
Good luck with that proposal Deminpenn Mar 2021 #79
How would the government know how much you drive to determine your tax then? MichMan Mar 2021 #80
It could be applied whenever you get a new car Deminpenn Mar 2021 #86
Since I keep cars 12 years, it would add up to a lot at once then. MichMan Mar 2021 #87
FAIL orangecrush Mar 2021 #84
"tax travelers based on how far they travel instead of on how much gasoline they consume" speak easy Mar 2021 #85
That is a very very bad idea...regressive tax and will get us tossed out in 22. Demsrule86 Mar 2021 #88
+1 area51 Mar 2021 #90
I agree agincourt Mar 2021 #92
Stupid as hell idea Mysterian Mar 2021 #93
The enforcement issues will kill this approach. BadGimp Mar 2021 #95

hlthe2b

(102,192 posts)
1. For many areas of the country that will be a regressive tax on those least able to afford it
Fri Mar 26, 2021, 11:05 AM
Mar 2021

since housing and lack of public transportation mean long commutes to work.

I'm not saying it could not be structured in such a way to make it work, but I have qualms.

hamsterjill

(15,220 posts)
2. Most definitely qualms.
Fri Mar 26, 2021, 11:10 AM
Mar 2021

In Texas, I’m already hearing the complaints about gas prices. Add anything else to that and we will definitely lose ground down here. There is virtually no public transportation and it hasn’t been a winning argument even when it has been discussed.

I hope they can find a way around a mileage tax and still get the bill passed. We need the jobs!

people

(623 posts)
11. Regressive tax
Fri Mar 26, 2021, 12:07 PM
Mar 2021

Bad idea for northern California. Many here have to commute hours to and from work because of the lack of adequate public transportation and because of how expensive housing is the closer to where their jobs are. Bad idea.

iluvtennis

(19,843 posts)
32. Exactly. And how will it be structured - it's 45 miles from my home in San Jose to my job in
Fri Mar 26, 2021, 02:11 PM
Mar 2021

Millbrae, but that one-way commute time for me is a little over 2 hours.

One hour of driving 10 miles to get to the Caltrain station and then an hour on the train. Is it only the driving miles that will be taxed or is it the total miles from home to work.

MissMillie

(38,545 posts)
59. It certainly was an issue for me when I worked in Boston
Fri Mar 26, 2021, 05:12 PM
Mar 2021

one-way commute was 60 miles. Housing in Boston far too pricey, jobs near my home didn't pay nearly eonough to pay the bills.

pazzyanne

(6,546 posts)
18. Worried.
Fri Mar 26, 2021, 12:21 PM
Mar 2021

I drive 40 miles round trip for grocery shopping, 80 miles round trip for a doctor's appointment, 190 miles round trip for a specialist appointment, etc. I am retired and live on my SS check. This tax would definitely hit me in my pocketbook which has already been hit with serious increases in utilities, groceries, etc. Did I mention the increase in gas prices?

JustABozoOnThisBus

(23,336 posts)
41. Yes, it's a regressive tax, just like taxes on gasoline and diesel.
Fri Mar 26, 2021, 03:30 PM
Mar 2021

But, a mileage tax also hits those using battery power, so it spreads the cost more evenly.

hlthe2b

(102,192 posts)
42. You would only think that if you lived on the East Coast & had no clue of the distances in the West
Fri Mar 26, 2021, 03:33 PM
Mar 2021

and rural areas. Nor the plight of the poor who have to live 40 or more miles from the city in which they can't afford to live but can only find work. I'm surprised at your response.

JustABozoOnThisBus

(23,336 posts)
46. I don't know why there's a surprise. Road infrastructure has been partly paid through fuel tax ...
Fri Mar 26, 2021, 03:47 PM
Mar 2021

... for years. A mileage tax will be just as regressive, but will apply to electric cars as well as gas/diesel. Yes, the impact is greater on those living in rural areas (like much of Colorado), but that's currently the case, right?

It would make more sense to use a progressive tax scheme, not only for this infrastructure improvement, but also as a replacement for federal and state taxes on gas/diesel. That would put the burden where it belongs.

But a tax based on mileage is still a bit fairer than a tax based on petroleum usage, because of the electric vehicles using the highways and bridges.


hlthe2b

(102,192 posts)
50. Fairer only if you are oppose climate change intervention.
Fri Mar 26, 2021, 04:14 PM
Mar 2021

You also fail to address the poor who travel countless miles to work because housing is so unaffordable and who are barely making it right now.

How, exactly is this FAIRER? They get a disproportionate percentage of the BURDON.

MichMan

(11,899 posts)
77. Do you really think this would be a replacement for current gas taxes ?
Sat Mar 27, 2021, 01:12 PM
Mar 2021
:

It would be in addition I'm sure

JustABozoOnThisBus

(23,336 posts)
78. Yes, it adds a regressive tax on top of existing regressive taxes.
Sat Mar 27, 2021, 02:21 PM
Mar 2021

But the regressive tax is spread across all car drivers, not just those with internal combustion engines.

Ideally, gas tax and mileage tax should be dropped, replaced by more progressive income taxes. But, yes, that won't happen.

Miguelito Loveless

(4,457 posts)
3. A mileage tax makes perfect sense
Fri Mar 26, 2021, 11:15 AM
Mar 2021

at the point where EV adoption is around 30%.

In the meantime, the gas tax should be raised, with an escalating surtax on any vehicle that does not get better than 32mpg. The lower the efficiency, the higher the surcharge. I would set the surcharge (collected at time of purchase) as 0.5% for each mile below 32, then 1% for each mile below 25, 2% under 20, 3% under 15.

Surtax would apply to new and used vehicles.

Miguelito Loveless

(4,457 posts)
29. If at some point
Fri Mar 26, 2021, 01:54 PM
Mar 2021

you have cause to replace your car, then look for a used Chevy Volt hybrid (2016 or later). They sell for a fraction of their original price, get 53 miles of electric range, which pretty much eliminates burning gasoline on day to day travel, and takes a bite out of gas usage on longer trips as they have an onboard gasoline generator which give you an additional 350 miles of range when the battery is exhausted. They can recharge overnight on a regular 110v outlet.

Between it, and our used 2012 Leaf, we cut our fuel consumption from 800+ gallons a year to under 40 gallons. Even with the increase in our electric bill, we save about $1,000 a year in gasoline.

I know this solution is not for everyone, but it will be the solution in the future as the shift to electric has begun.

pazzyanne

(6,546 posts)
63. Thanks for the information, Miguelito Loveless.
Fri Mar 26, 2021, 07:10 PM
Mar 2021

I am always looking for a way to cut costs, just don't have much room in the budget any more.

Demsrule86

(68,539 posts)
89. No, it is a regressive tax that will hurt the already struggling middle class and the poor.
Sun Mar 28, 2021, 10:31 AM
Mar 2021

It is a very bad idea.

Fiendish Thingy

(15,568 posts)
4. I like Bernie's tax increase on the rich proposal better
Fri Mar 26, 2021, 11:16 AM
Mar 2021

A mileage tax will hit people who drive their own vehicles for a living- truckers, Uber drivers, pizza delivery, Amazon contractors- hard. It will be seen as breaking Biden’s promise not to raise taxes on people making less than $400k/yr.

NurseJackie

(42,862 posts)
5. Oh brother!
Fri Mar 26, 2021, 11:23 AM
Mar 2021
It will be seen as breaking Biden’s promise not to raise taxes on people making less than $400k/yr.
Oh brother! Income tax. Income tax. But I'm sure the same folks who were expecting $2000 checks will also take advantage by "misunderstanding" this and using it to try and kneecap Biden.

A mileage tax will hit people who drive their own vehicles for a living- truckers, Uber drivers, pizza delivery, Amazon contractors- hard.
As do gasoline taxes and other tolls. It will need be calculated-in as a cost of doing business and either "written off" or passed along to the consumer.

I like Bernie's tax increase on the rich proposal better
Is Bernie the only one proposing higher taxes on "the rich"
 

DanieRains

(4,619 posts)
14. The 1% Has 50 Trillion They Basically Stole By Using A Corrupt System That Has The Poor
Fri Mar 26, 2021, 12:11 PM
Mar 2021

And workers pay the nation's bills while they amass fortunes and pay practically no taxes.

Tax wealth, and pay off our national debt.

Fiendish Thingy

(15,568 posts)
15. I know you're anti-everything Bernie, but in this case, as chairman of the budget committee
Fri Mar 26, 2021, 12:15 PM
Mar 2021

All tax proposals eventually get funneled through him and his committee.

He’s supporting increased taxes on corporations and the richest Americans. I don’t care who authors the bill that is finally passed, I think tax increases on the wealthy and corporations are preferable to a mileage tax.

NurseJackie

(42,862 posts)
20. That's not true. I haven't attacked you personally... please refrain from doing that to me.
Fri Mar 26, 2021, 12:41 PM
Mar 2021
I know you're anti-everything Bernie,
That's not true. What an ugly accusation and unfair thing to say about me. I haven't attacked you personally... please refrain from doing that to me.

I don’t care who authors the bill that is finally passed,
Then why try to characterize it as if it's his original idea? It's not.

I think tax increases on the wealthy and corporations are preferable to a mileage tax.
Let's do what's possible rather than limiting ourselves to things that are unlikely or (currently) impossible. A mileage tax makes a lot of sense when it comes to vehicles that spend ZERO on a traditional road-use gas-tax.

Here in Maryland, the state's gas tax is about 25-cents per gallon. A vehicle that gets 25 miles per gallon is paying 1-cent per mile.

One cent! If that was transferred to electric vehicles as a mileage tax... that's quite reasonable.

Fiendish Thingy

(15,568 posts)
28. I guess we just see things differently
Fri Mar 26, 2021, 01:44 PM
Mar 2021
I know you're anti-everything Bernie,

That's not true. What an ugly accusation and unfair thing to say about me. I haven't attacked you personally... please refrain from doing that to me.


I can only draw from my own personal experience- I find it quite predictable that, nearly every time I post anything remotely positive or praising about Bernie, you respond with a negative comment about him. So, not an attack on you personally, just a statement of fact regarding your responses to my posts.

I don’t care who authors the bill that is finally passed,

Then why try to characterize it as if it's his original idea? It's not.


Because Sanders just made a statement today, or late yesterday, supporting tax increases for the rich- his was the most recent and relevant comment.

We definitely see things differently on a mileage/gas tax- the media would spin that hard as a tax on the middle class, regardless if isn’t technically a reneging of Biden’s promise not to raise income taxes on the middle class- that’s a fact.

NurseJackie

(42,862 posts)
37. No, I don't. No, it's not a "fact".
Fri Mar 26, 2021, 02:53 PM
Mar 2021
I find it quite predictable that, nearly every time I post anything remotely positive or praising about Bernie, you respond with a negative comment about him.
No, I don't.

So, not an attack on you personally, just a statement of fact regarding your responses to my posts.
No, it's not a "fact". Yes, it is an attack to make false characterizations about me because I'm not "anti-Bernie everything".

Because Sanders just made a statement today,
So, naturally, that makes it "Bernie's proposal". Got it.

the media would spin that hard as a tax on the middle class
With help from the people who hate Biden and who are trying to cripple and kneecap him.

regardless if isn’t technically a reneging of Biden’s promise not to raise income taxes on the middle class
As long as the media and the Biden haters have others to push that narrative for them, then they've won. What good purpose does it serve for anyone to do their dirty work for them?

If someone has an electric vehicle and is spending about $9 (or so) for an at-home overnight charge... and that's equal to 300 miles (or so), and considering all the savings of NOT spending $40 (or so) to fill up at the pump, they can certainly afford a penny a mile use-tax for the roads that benefit them (and everyone else). That's THREE DOLLARS per charge-up.

All this whining and hand-wringing over THREE DOLLARS that will be deducted from their $31 per "fill-up" savings? Gee-zus-kryst. The sky is NOT falling!

2naSalit

(86,502 posts)
33. Truckers already pay...
Fri Mar 26, 2021, 02:21 PM
Mar 2021

Road use/ton mile taxes for each state every quarter and fuel taxes for each state calculated for each mile driven in that state and a fuel tax at the pump. And then there are excise taxes on tires that cost a few hundred $s each.

And I have a sixty mile round trip for groceries and 120 mile round trip to get to bigbox stores in the next count over... I already pay high gas prices so I wonder how my SSDI will be stretched for another tax.

George II

(67,782 posts)
43. This is something the SECRETARY OF TRANSPORTATION and PRESIDENT are considering.
Fri Mar 26, 2021, 03:42 PM
Mar 2021

And it's being "considered", so obviously all the details have not been established yet, which will come IF they decide to move forward beyond the consideration stage.

What does Sanders' tax increase proposal have to do with this at all?

NurseJackie

(42,862 posts)
57. It's a binary view of how the government raises money to do the things that governments must do.
Fri Mar 26, 2021, 05:00 PM
Mar 2021

The "this or that" and "one or the other but not both" approach is one that's related to "my way or the highway".

In the real world, that's not how things are done.

If/when I'm lucky enough to own an electric vehicle. I'll certainly not mind paying a mileage tax.

Right now, in Maryland, there's a 25-cents tax per gallon of gas. For cars that average 25 miles per gallon, that a PENNY A MILE they're being taxed.

As electric vehicles begin to replace combustion powered vehicles, it's easy to see how the "gas tax" will not provide enough funds to even maintain the roads/bridges/etc and an equivalent "miles tax" will need to ALREADY BE IN PLACE to take over.

This, in my opinion, is a very reasonable approach and something that will be needed.

Considering that an EV can be fully recharged at home overnight for about $9. The equivalent fill-up would be $40. (Saved $31 already.)

Let's assume that the EV can travel about 300 miles on a single charge... a mile-based tax of a penny per mile is $3. I think that considering the overall savings... it's rather reasonable to tax miles.

This is NOT a "sky is falling" event that the hand-wringers want to make it out to be.

George II

(67,782 posts)
58. Note the headline: "White House considers vehicle mileage tax"....
Fri Mar 26, 2021, 05:02 PM
Mar 2021

...CONSIDERS. They're probably considering a dozen ways of funding the infrastructure, among them an unspecified, undetailed vehicle mileage tax.

Will it apply to only trucks? We don't know.
Will it apply only to commercial driving? We don't know.
Will it apply to drivers going to work? We don't know.
Will it apply to interstate travel? We don't know.
Will it apply only to recreational driving? We don't know.

I for one am willing to wait until a formal proposal is presented, with details and applicability, and then will critique it if I feel it's appropriate.

PA_jen

(1,114 posts)
6. interesting idea however I fear how it will effect Truck Drivers. Corporations
Fri Mar 26, 2021, 11:25 AM
Mar 2021

will push this tax on them.

2naSalit

(86,502 posts)
36. Only those who are owner operators...
Fri Mar 26, 2021, 02:26 PM
Mar 2021

They are likely to jack up their freight rates to cover it, though.

O/O truckers already pay:

Road use taxes for each state they travel in
Fuel taxes on a quarterly basis
Fuel taxes at the pump whenever they buy fuel
Excise taxes for tires
Freight insurance in case something goes bad with the cargo
Licensing
And other operating costs.

When I was an O/O many years ago, my truck earned a good half million$ a year, I got 45K for my trouble.

Corporations get all the breaks.

AZLD4Candidate

(5,658 posts)
7. More regressive taxes. Can we stop taxing the poor to fund everything?
Fri Mar 26, 2021, 11:25 AM
Mar 2021

That was one of the causes of the French Revolution.

George II

(67,782 posts)
44. How is this already being decried as "taxing the poor"? Do you know details about it that even....
Fri Mar 26, 2021, 03:43 PM
Mar 2021

....Secretary Buttigieg doesn't?

AZLD4Candidate

(5,658 posts)
47. It is based on a consumption tax, which is by definition a regressive tax.
Fri Mar 26, 2021, 04:00 PM
Mar 2021

Instead of fuel consumption, it's mileage consumption.

It will also hit rural drivers who need to drive further. In other words, it is a tax penalty for people who don't live in cities.

madville

(7,408 posts)
82. Everything filters down to the poor eventually
Sat Mar 27, 2021, 11:37 PM
Mar 2021

If you raised taxes on Coca-Cola and Pepsi, they would raise the price of a soda a few cents to cover it. The consumer pays the tax in the end no matter where it is initially applied.

AZLD4Candidate

(5,658 posts)
83. Sales taxes are all regressive. Consumption taxes usually can't also be claimed on a federal
Sun Mar 28, 2021, 12:30 AM
Mar 2021

1040 form, so you have no ability to claim them.

Cap Gains should be taxes as regular income.

Sales taxes should be completed abolished.

machoneman

(4,006 posts)
8. A really bad idea! Regressive, hurts those most in need and penalizes those who need a car to work.
Fri Mar 26, 2021, 11:31 AM
Mar 2021

Easy example: those who drive a $100,000 car shrug off a 10% ad valorem gas tax. Those who driver a beater due to no money for a better car pay exactly the same for mileage or gas!

BumRushDaShow

(128,714 posts)
9. A downside for this will be for those in large rural states
Fri Mar 26, 2021, 11:38 AM
Mar 2021

where there obviously is no public transit between small towns and/or unincorporated "villages" and the cities and it would probably not be cost effective to have such.

On one hand, some of those states tend to have cheaper gas prices than the more densely populated "smaller" (geographically) states, and particularly when compared to the prices being charged in urban areas. But on the other hand, there is little choice except maybe get a motorcycle or electric bike or a horse (and buggy).

Perhaps charge a mileage tax on all those private jets or limos or boats/yachts over a certain size...

George II

(67,782 posts)
45. From what little I've seen about this (it's still in the "consideration" stage) I don't think....
Fri Mar 26, 2021, 03:46 PM
Mar 2021

....it will apply to commuting to/from work, and most of it appears to be directed toward other travel/driving.

BumRushDaShow

(128,714 posts)
52. Yeah I expect it was a "trial balloon" that was thrown out there to gauge the sentiment
Fri Mar 26, 2021, 04:25 PM
Mar 2021

and I know the idea has been floated on and off for a long time but generally doesn't get any traction once the details are looked at.

I think the bond issue is probably the better way to go - at least initially or even something along the line of charging the big office parks that need "road infrastructure" to get their employees to and from them (as an incentive for them to relocate closer to or back to the cities).

George II

(67,782 posts)
56. Unfortunately in most states roads have been saturated with respect to tolls, and it's not...
Fri Mar 26, 2021, 04:49 PM
Mar 2021

...practical (in fact unconstitutional) to levy Federal tolls. I read once that it's considered "regulating interstate commerce".

BumRushDaShow

(128,714 posts)
61. Here in PA
Fri Mar 26, 2021, 05:29 PM
Mar 2021

we have the highest gasoline taxes in the nation.

But I had mentioned the "bond" issuances, which are how many municipalities fund local "infrastructure" projects. I.e., you may have big pension funds that could invest in those bonds (with a reasonable interest rate) rather than speculate on the stock market.

And of course agree that one of big PITAs are tolls and certainly here we have them and they had even recently announced increasing them on the PA turnpike to raise money for roads/bridges (after they already had the earlier big increases in the gasoline tax and for the cost of licenses & car registrations, etc. - all done for just that purpose AND to help fund mass transit).

The trial balloon that they did float here was to toll I-95 through the state, which is basically only running from just north of Philly and down to the Delaware border (which believe it or not, doesn't have tolls along the way within PA - you get hit in Delaware or in New Jersey at the bridges). And that caused an uproar.

It's sad that we end up with the corporations getting more and more tax incentives (where they wouldn't be contributing their fair share for projects like infrastructure) and if they aren't given those breaks, then they move to states that do give them that, essentially a win-win because they kill the jobs in states that they leave and kill the discretionary/available income from the residents in the states they move to (as those residents are paying for those incentives through some type of higher taxes).

BumRushDaShow

(128,714 posts)
71. That might have a tiny bit less pushback
Sat Mar 27, 2021, 06:13 AM
Mar 2021

than the small section of I-95 (due to 95 being the most heavily-traveled interstate, notably too for trucking commerce, in the nation).

Deminpenn

(15,273 posts)
72. The rural counties that 80 runs through howled when
Sat Mar 27, 2021, 06:18 AM
Mar 2021

Rendell tried it during his governorship. IIRC the argument was something like I80 is their local road, but far more people commute on the Tpk and pay daily tolls.

BumRushDaShow

(128,714 posts)
73. I had an uncle who was born and raised in Massachusetts
Sat Mar 27, 2021, 06:37 AM
Mar 2021

and married my mother's sister and they lived with my cousins in New Hampshire. He was an entomologist and used to be on the road all the time chasing/monitoring the various insect invasions (back then it was the gypsy moth), and managed to learn every toll road from here to up there.

We used to drive up there every summer with him and discovered that he knew what exits to get off in little obscure towns along the way that only charged a 10 cent toll at their exits vs the $1 tolls on the main highway stretch. So he would get off at those exits and then get back on the main highway further down, avoiding the $1 toll.

Deminpenn

(15,273 posts)
74. LOL! That's a great family story
Sat Mar 27, 2021, 10:12 AM
Mar 2021

Luckily where I am, the Tpk commission decided to make toll-free from my exit to Warrendale. Now there's this small section of Tpk from Warrendale (old exit 3) to Ohio with no toll.

NurseJackie

(42,862 posts)
10. It makes perfectly good sense when it comes to Electric Vehicles that pay no gas-tax...
Fri Mar 26, 2021, 11:54 AM
Mar 2021

... or road-use taxes at all (other than tolls and ez-pass fees). I'm in favor of it for EV's.

 

DanieRains

(4,619 posts)
12. Tax Gasoline And Diesel Not Mileage
Fri Mar 26, 2021, 12:07 PM
Mar 2021

People who drive electric cars should not have to pay for anything for a while.

Have gas tax pay for some of what emissions causes.

This is idiotic.

 

marie999

(3,334 posts)
23. What is the difference between a gas driven car and an electric driven car
Fri Mar 26, 2021, 01:04 PM
Mar 2021

when they both use the same roads and bridges? This is infrastructure, not climate change or pollution.

Deminpenn

(15,273 posts)
70. Electricity derived from fossil fuels is not "renewable"
Sat Mar 27, 2021, 06:09 AM
Mar 2021

Switching from mostly coal to mostly natural gas fueled power generation doesn't make electricity a better choice.

JCMach1

(27,555 posts)
91. Then pay me a carbon credit for the CO2 I'm not putting in the air
Sun Mar 28, 2021, 12:14 PM
Mar 2021

Because I'm not using an ICE ...

We need to incentivize electrics and smart grids.

Deminpenn

(15,273 posts)
94. The point is electricity is also produced from fossil fuels
Sun Mar 28, 2021, 03:32 PM
Mar 2021

While natural gas might be cleaner, it's still non-renewable. So unless you are getting your electricty from solar panels installed on your property or your electric providers produces its power from solar, wind or other true renewables, you are no better than people who have regular cars.

Further, many homeowners own tractors, lawn mowers, trimmers, chain saws, washers, dryers etc that are gas-powered.

Bayard

(22,035 posts)
16. "He spoke fondly of a mileage levy"
Fri Mar 26, 2021, 12:17 PM
Mar 2021

Fondly?

I don't like the idea of a mileage tax. I'd rather pay a few more cents on the dollar, but--I hardly go anywhere. There should be a ceiling for people who have to commute hours a day.

DetroitLegalBeagle

(1,919 posts)
17. Great way to lose Michigan with this
Fri Mar 26, 2021, 12:18 PM
Mar 2021

Michigan gas taxes are in the top 10 highest in the country. Public transportation doesn't exist outside of the large metro areas, and those large cities with it have some of the most underdeveloped systems in the country. People here depend on their vehicles to get around and we have the highest vehicle ownership costs in the country already. [link:http://www.dailydetroit.com/2016/03/21/study-says-michigan-expensive-state-america-car/|]
Piling this on top of all that is surefire way to turn off voters and flip Michigan red again. Find the money elsewhere.

 

Ron Obvious

(6,261 posts)
21. Terrible idea
Fri Mar 26, 2021, 12:49 PM
Mar 2021

It requires a whole new tax infrastructure to be set up, it's very privacy-invasive (assuming these proposals are similar to the European ones a few years ago, requiring installation of GPS devices to track the location), and penalises drivers of fuel-efficient vehicles which do the least amount of damage to the roads by treating them the same as big SUV's.

Raise the gas tax for now. The tax infrastructure is already in place and rewards fuel-efficiency. We can always add to the sales tax for EV's or some other solution if they become too large a percentage of cars out there.

Dopers_Greed

(2,640 posts)
22. Tax on the poor
Fri Mar 26, 2021, 01:04 PM
Mar 2021

All the housing is exorbitantly expensive in city-centers where the jobs are.

Lower and middle class have to commute longer, and this will hit them harder.

Dems must really hate being in power. What's next, a tax on child care?

MichMan

(11,899 posts)
24. Every car would be equipped with a GPS to track people's driving?
Fri Mar 26, 2021, 01:16 PM
Mar 2021

How would they know how far people drive?

bucolic_frolic

(43,115 posts)
26. Put the tax on TIRES, the more they wear out, the more you pay
Fri Mar 26, 2021, 01:35 PM
Mar 2021

There's little way to avoid the tax other than give up your vehicle. If your tires wear out prematurely or are damaged or totaled, you get a credit against the tax on the new ones.

No worry about EV vs. gas. vs diesel. Long commutes and truckers can get a tax deduction for their business mileage.

AZLD4Candidate

(5,658 posts)
51. See my response to #44
Fri Mar 26, 2021, 04:19 PM
Mar 2021

I said this is a consumption tax based on distance consumption, not fuel consumption. It's a sales tax with a different name, and it is, by definition, a regressive tax that will attack the poor and those that don't live in cities.

I grew up in the Catskills. This would be like putting a tax meter on my odometer when I had to drive 26 miles one way to go to school with my mother.

Puppyjive

(501 posts)
40. I Work From Home
Fri Mar 26, 2021, 03:13 PM
Mar 2021

Don't drive much these days. How about an internet tax or cell phone tax. Almost everybody uses them and so more people would be contributing. I think a mileage tax is unfair to those who are required to drive a lot due to their employment.

BBbats

(89 posts)
48. This will really hurt musicians.
Fri Mar 26, 2021, 04:03 PM
Mar 2021

This will put quite a hurting on musicians along with sound companies & roadies & lighting companies.
It will really hurt music & theater touring.Even local musicians can put a lot of miles on a vehicle.Not to mention people who do Children's music.
The list goes on!

Shermann

(7,409 posts)
55. So the IRS is going to audit my odometer?
Fri Mar 26, 2021, 04:39 PM
Mar 2021

I don't think so.

Just raise the fuel tax a bit and move on. Until EV adoption hits 51% a fairer system is premature. The incentives must remain in place.

lostnfound

(16,169 posts)
64. No longer incentivizing fuel efficiency?
Fri Mar 26, 2021, 07:24 PM
Mar 2021

Lightweight cars put less stress on the road than heavy trucks.

TexasBushwhacker

(20,160 posts)
81. That's what I was think I was thinking
Sat Mar 27, 2021, 06:35 PM
Mar 2021

We already tax gasoline and diesel, and the vehicles that drive more and are less fuel efficient pay more tax. Seems like tacking on another dime to the fuel tax would be more efficient.

Mysterian

(4,574 posts)
65. I'm not a fan of this idea
Fri Mar 26, 2021, 07:26 PM
Mar 2021

It's not just pukes who live in rural areas. I live in the sticks. 75 miles to the nearest Mao-Mart.

WarGamer

(12,423 posts)
67. Hmmm... will The Repubs win 300 House seats or 400 in 2022?
Sat Mar 27, 2021, 01:30 AM
Mar 2021

Bad idea.

Tax the fucking rich.

They have all the money. They profited during a pandemic where others struggled.

TAKE the money. Now.

Stop playing nice with billionaires.

Deminpenn

(15,273 posts)
68. How would you even determine this?
Sat Mar 27, 2021, 05:56 AM
Mar 2021

There would have to be some sort of tracking even if it's only annual self-reporting of odometer reading like it is in PA when you renew your car registration. I'm sure the vast majority of Americans would/will object to their travels being tracked in real time - way too "big brother"ish.

The most realistic method I could see would be to apply a mileage tax whenever you sell a car by subtracting the mileage when the car was bought from the current mileage. But this really hurts people who have to drive to/from work because it's too expensive to live near their work or they have to drive for a living like contractors or there's no public transportation and so on. I agree it's a regressive tax, too.

Right now, interest rates are so low it is the perfect time to borrow for big projects. Special bonds are the way to go, imho. Certainly mutual bond funds and pension funds would invest and I think many Americans would, too, just like they do in US Savings Bonds. Infrastructure Bonds could be easily promoted as a patriotic thing to do as well.

MichMan

(11,899 posts)
75. Order the states to make everyone to install GPS tracking in order to renew plates.
Sat Mar 27, 2021, 01:08 PM
Mar 2021

States who don't comply will receive zero infrastructure dollars for roads and bridges.

Deminpenn

(15,273 posts)
79. Good luck with that proposal
Sat Mar 27, 2021, 03:16 PM
Mar 2021

I think something like that would be challenged as unconstitutional under the 4th amendment as a privacy issue. It's not all that different from privacy concerns related to cell phones or internet usage,

MichMan

(11,899 posts)
80. How would the government know how much you drive to determine your tax then?
Sat Mar 27, 2021, 03:38 PM
Mar 2021

If GPS is not allowed?

Deminpenn

(15,273 posts)
86. It could be applied whenever you get a new car
Sun Mar 28, 2021, 06:12 AM
Mar 2021

by subtracting the odometer reading when you got the car from the reading when you sell it.

Of course, if the infrastructure bill includes building charging stations similar to gas stations, then you can have the same kind of fuel tax.

But the whole taxing miles driven is a bad idea and hurts people who don't have a choice but to drive.

MichMan

(11,899 posts)
87. Since I keep cars 12 years, it would add up to a lot at once then.
Sun Mar 28, 2021, 09:56 AM
Mar 2021

Cheaper to just park the car on my property somewhere. Then since it wasn't ever sold, I would never have to pay.

orangecrush

(19,495 posts)
84. FAIL
Sun Mar 28, 2021, 12:36 AM
Mar 2021


Put the burden where it belongs, on the back of corporations that profit from the use of the infrastructure and the wealthiest of us, who can afford to go cross country vaccination shopping, not some poor schlep who has to commute to work.

speak easy

(9,220 posts)
85. "tax travelers based on how far they travel instead of on how much gasoline they consume"
Sun Mar 28, 2021, 05:36 AM
Mar 2021

In other words, tax EVs and hit more fuel efficient vechicles.

Um ... no.

agincourt

(1,996 posts)
92. I agree
Sun Mar 28, 2021, 12:24 PM
Mar 2021

All the things to talk about for transportation and this is what he comes up with. Russia I believe has that system already, many protests but they didn't go far in an authoritarian state. This is an awful idea which will allow the democratic party to be attacked from the left, something the right has been doing through "aggressive progressive" proxies for some time.

Mysterian

(4,574 posts)
93. Stupid as hell idea
Sun Mar 28, 2021, 01:22 PM
Mar 2021

Increase taxes on the wealthy to fund public transportation.

NO MORE regressive taxes on the working class!

BadGimp

(4,012 posts)
95. The enforcement issues will kill this approach.
Sun Mar 28, 2021, 05:36 PM
Mar 2021

The idea makes a lot of sense to me but not practical sense.

In order to enforce it, +The Federal Government (for starters) will require a trackable means to monitoring our mileage. Asking people to voluntarily report will never work.

Q: Anyone ok with the idea of having electronic monitoring equipment in our vehicles 24/7/365 wherever we are?


My answer is F*%@ No!

Latest Discussions»Latest Breaking News»White House considers veh...