During an interview with CNBC’s Kayla Tausche, Transportation Secretary Pete Buttigieg argued for a vehicle mileage tax which would help fund President Joe Biden’s soon to be released multi-trillion dollar infrastructure plan.
The comments from Buttigieg were shocking to say the least considering it shows how far Democrats will go to gouge the American people’s wallets. Don’t be fooled by Democrats who say “only the rich people will pay more in taxes.” Well who are the ones driving to and from work every day? The working class Americans!
“So I think that shows a lot of promise,” Buttigieg said during the interview with Tausche about a tax on driving. “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.”
Transportation Secretary Pete Buttigieg says taxing drivers by the mile “shows a lot of promise” and could be a way to fund a big infrastructure overhaul. pic.twitter.com/fkI5nWt7sr
— The Recount (@therecount) March 26, 2021
Check out what the Daily Caller reported:
The gas tax has been used to generate revenue to fund the highway system, but revenues have slowly decreased, according to the Tax Foundation. In 1994, a passenger car that averaged 20.7 miles per gallon paid roughly 3.2 cents in state and federal taxes. Meanwhile, a passenger car averaging 24.4 miles per gallon in 2018 only paid 2.1 cents, according to the Tax Foundation.
There is a roughly $16 billion deficit in federal highway funding, according to Bloomberg. The Highway Trust Fund, which pays for roads and transit systems, gets most of its funding through the federal gas tax. The federal gas tax has similarly not been raised since 1993 and rests at 18.4 cents per gallon, according to the report. Revenues generated top $34 billion per year even though federal spending far exceeds that, according to the report.
The tax could be levied in two ways, according to the Tax Foundation. There could be a flat tax or a tax varied depending on different locations. An odometer reading conducted once a year would be used to calculate how much is owed. Cars with different weights would have varied taxes, according to the report. Pilot programs allow participants to report their odometer readings electronically or in person and participants can use smartphone apps or a plug-in device to record mileage, according to Bloomberg.
Now that revenues are declining from the gas tax, Democrats want to gouge the American people’s wallets in a different way.
“People are talking about it more than have in the past, which is a good thing,” said Executive Director of the American Association of State Highway and Transportation Officials Jim Tymon. “The vehicle fleet is trending toward electrification and the Biden Administration is going to prioritize this.”
“That’s going to force their hands a little bit because you’re not going to be able to collect the same amount of revenue as you do from gas and disease vehicles,” he added.
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