The US government has been mulling various ways of how to pay for Biden’s next big-ticket infrastructure proposal, and one of the recent ideas thrown into the mix has been a vehicle mileage tax.
In an interview with CNBC in Friday, Transportation Secretary Pete Buttigieg said a tax on miles driven is a proposal that is becoming promising, especially as the Biden administration faces increased pressure to come up with additional funding for its ambitious ‘Build Back Better” infrastructure plan. Buttigieg entertained the idea days before Biden is scheduled to pitch his $3 trillion infrastructure plan in Pittsburgh, which includes proposals to fix US roads and bridges, and funding for ‘social infrastructure’ such as childcare and college.
The tax on miles would address growing shortages in the country’s highway trust fund, which receives funding from gasoline taxes. With more Americans switching to electric vehicles, the fuel tax is creating shortcomings in funding necessary for the maintenance and construction of US roads and bridges.
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If materialized, a mileage levy would tax drivers based on the distance of their journey, rather than how much fuel they consume. A mileage tax “shows a lot of promise 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,” explained Buttigieg.
Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
It’s no fault to the consumers in any country that manufacturing companies have made the decision to make and allow electric cars to be sold and driven in the public, for sources of transportation and it doesn’t matter how much or how little we drive our electric cars for those who are even able to afford to purchase one. The manufacturing companies who designed the electric cars need to pay a fee per each car they build to be sold to the consumers in any country because we are not the ones as consumers who designed cars that do not require us to purchase gasoline! As consumer who drives cars that require gasoline we are already taxed!! The buck starts with the manufacturing companies not the consumers, get the money from them! Who on God earth is going to be able to afford to pay for gasoline while it’s rising under your adminstration Biden, and then we are taxed on that and then you have the nerve to want to charge us all a milage tax. This is ridiculous and uncalled for!