Infrastructure bill won't include mileage tax: DOT spokesperson

[DonViejo]

Source: The Hill


BY MYCHAEL SCHNELL - 03/28/21 01:07 PM EDT

The Biden administration’s looming infrastructure bill will not include a mileage tax, The New York Times reported on Saturday, citing a Transportation Department spokesman.

This development comes days after Transportation Secretary Pete Buttigieg on Friday said that a tax on how far travelers go would be a promising way to fund the infrastructure bill, which reports say could be as large as $3 trillion.

“I think that shows a lot of promise,” Buttigieg said. “If we believe in that so-called user-pays principle, the idea that part of how we pay for roads is you pay based on how much you drive.”

"The gas tax used to be the obvious way to do it; it’s not anymore,” he continued. “So, a so-called vehicle miles traveled tax or a mileage tax, whatever you want to call it, could be the way to do it.”

Read more: https://thehill.com/policy/transportation/infrastructure/545293-infrastructure-bill-wont-include-mileage-tax-dot

[dalton99a]

1. Bad idea. Lots of working people have to commute.

Don't give the GOP a talking point for the midterms
- "Democrats to Require Odometer Monitoring System for Mileage Tax"

[lagomorph777]

25. Eesh. You got that right!

[Tree Lady]

26. And to live cheaper the farthest nt

[oldsoftie]

2. Also, dont include things that have nothing to do with infrastructure.

Like student loan forgiveness & the other things we've heard.

[Ferrets are Cool]

3. Thank the Goddess

[bucolic_frolic]

4. Everyone wants it to be free

or paid for by someone else. That's why Mexico paying for the wall was bought by some.

I think they should stop building new roads. Just repair, and complete the connections already needed.

But if roads and bridges are going to be paid for, you're going to have to come up with revenue somewhere. Even if you borrow the money, there's interest to be paid.

So ... taxes? tolls? user fees? new car taxes? gas taxes, electricity taxes, licensing fees, component fees? EZ Pay? My state suddenly allowed an extra $5 a year by each county on top of state registration.

How about taxing all estates, large and small? The passing generation paid low road taxes all their lives, so much so the infrastructure needs attention. A modest $200 per might help.

[Demsrule86]

9. When we are getting screwed by Tax cuts...no regressive taxes...GM, ATT and

Amazon to name a couple paid no taxes last year.

[TexasBushwhacker]

5. I don't see what he has against a gas tax

The biggest, heaviest vehicles consume the most fuel, wear out the roads the most and produce the most pollution. Tack on another dime per gallon.

[Demsrule86]

8. It is a regressive tax.

[dsc]

10. It is generating less and less money per mile driven

because we are using less and less gasoline per mile.

[PoliticAverse]

13. If the goal is to switch to vehicles that don't use gasoline or diesel but use electricity...

(or propane, or hydrogen) then you are going to be getting less tax revenue.

[TexasBushwhacker]

15. Then add a surtax to those type of energy

Granted, most people will be charging their EVs at home, but you can still ad a surtax at retail charging stations, and he hydrogen and propane suppliers.

[PhylliPretzel]

23. Mileage Tax at time of Registration

As an owner of an electric vehicle, I want to pay my fair share for my use of the roads. A fee based on mileage driven, paid at the time of our yearly registration, in addition to the standard fee, would do that.
Some Republican legislators here in PA are proposing a flat fee for EVs which I cannot support.

[TexasBushwhacker]

34. I'd be okay with that

But then, I don't put a lot of miles on my car, plus it's a hybrid.

[James48]

19. There won't be any gasoline cars soon.

Already there are lots of electric automobiles not paying a cent towards the roads they use. California is talking banning gasoline powered cars as of 2035. Without liquid fuel taxes, there are no funds to maintain roads.

You will either have to tax electricity, or tax by the mile. And since anybody can set up their own solar generating station in a few years, the mileage tax is the easiest and least expensive way to collect someone’s fair share of roadway use.

[Deminpenn]

6. That trial balloon sure didn't fly

The easiest way to fund a big infrastructure bill is to roll back the "premanent" portion of the Trump tax cuts and by using special purpose bonds. Money is cheap right now so the interest cost would be minimal and people/pension funds/tax-free mutual funds like the security of US government bonds.

[tirebiter]

7. Guess I'll fix my odometer

[mwooldri]

11. If the gas tax is abolished...

... and replaced with a mileage tax that's categorized based on type of vehicle then IMO it would be a reasonable replacement. Sure, heavier vehicles would pay more (and still would) and electric vehicle owners would start paying for the road too. However it would keep the "user pays" principle in place and allow people to see the direct cost between their motoring and their mileage. Gas tax is "pay as you go" whereas mileage would be annual (or more frequently for commercial motor vehicle operators).

[Demsrule86]

31. It is a regressive tax whether it is on gas or electric cars...I am against both.

[herding cats]

12. This seemed unfair to me for contract laborers.

They often have to drive extensively for jobs from home to work. This would put a lot of those laborers at an unfair disadvantage.

[bucolic_frolic]

22. They already pay taxes on gas

18 cents federal excise plus state taxes of from 14 to 58 cents per gallon.

They really should try to standardize the state taxes on gasoline.

[Demsrule86]

30. They should get rid of it...states put it in the general fund and do not use it for roads.

[EllieBC]

14. It would be a regressive tax that would punish the working class.

It wouldn’t hurt the wealthy. It wouldn’t hurt corporations. It would hurt people that have to commute for work. It’s a stupid idea.

[cstanleytech]

16. "It's a stupid idea." Not entirely. If the tax was limited for private usage to a cap of say 10,000

miles for private non commercial usage at 5 cents a mile that would cost a total of no more than 500 a year for most people.
However for commercial usage such as for truckers for example it would be uncapped so they would continue paying past that 10,000 miles.

[Demsrule86]

17. No. I resent paying more taxes than giant

Corporations and the wealthy. It is also a stupid ides because it would likely cost us the majority. In congress.

[cstanleytech]

20. "I resent paying more taxes than giant Corporations" You wouldn't as your tax would be capped

so once you hit the 10,000 miles you would not be charged anymore at all where as the companies and corporations like amazon would end up paying more as they would have no cap that cuts it off.
They might also want to consider adding a vehicle weight tax for any over 10,000 pounds.

[Demsrule86]

28. I would resent it. I am immovable in my opposition to a mileage tax...feel the same about gas taxes.

[bucolic_frolic]

21. The same can be said for the gasoline tax

It's based on miles and fuel efficiency of the vehicle.

Current state gas taxes range from about 14 cents to 58 cents per gallon. That works out to about half a cent a mile, to 2 cents a mile.

Federal excise tax on gasoline is 18.3 cents per gallon.

So IF they eliminated those taxes, they'd need 3-4 cents per mile to make equivalent revenue.

But of course the whole idea is to raise more revenue to pay for repair and upgrades.

[Demsrule86]

29. The gas tank is paid at the pump and they don't know what kind of car you drive.

I would get rid of the gas tax as well...it too is regressive and targets the poor and the middle class.

[DFW]

18. It is unfair to tax people because their job isn't next door.

I can’t see penalizing some worker who can’t afford a house or apartment across the street from where they work, or next door to the nearest public transportation. My work usually involves hundreds of miles of commuting each day, but I still have to get to the airport or train station, so I still need my car to get there.

[area51]

24. +1 n/t

[dalton99a]

27. +1. And the gas tax already implies miles driven

More miles needs more gas

A mileage tax would be political suicide.

[obamanut2012]

32. Also, some people cannot afford rent/mortgage where they work

And, no public transport way to ride, or even bike.

[NurseJackie]

33. It's just a matter of time. As Electric-Vehicles begin to take over, a mileage tax...

It's just a matter of time. As Electric-Vehicles begin to take over, a mileage tax will replace/offset the revenue lost in gasoline taxes. In order for it to work smoothly, it will need to be seamless and a slow roll-out.

I think a penny (or two) per mile sounds perfectly reasonable.

Here in Maryland, there's a state gasoline tax of 25-cents per gallon. If my truck averages 25MPG, then that's a penny-per-mile that I've forked over to the State of Maryland.

If/when/maybe-if/maybe-when we become an EV family, it will take about $9 for an at-home overnight charge and that will get me about 300 miles (or so).

For those same three hundred miles, I'd have to buy 12 gallons of gasoline at (currently) $2.85 per gallon. That's about $34.00.

Compared to an overnight charge, that's a savings of about $25 per "fill up" (or charge-up).

It's really no skin off my nose to do my part and pay Maryland 1 or 2 cents per mile... that means my savings per "fill-up" would be $22 instead of $25.