UPDATED 6:30 PM PT – Friday, March 26, 2021
The Biden administration is considering slapping more taxes on Americans to fund its eventual infrastructure plan. Transportation Secretary Pete Buttigieg made the announcement while speaking to reporters on Friday.
He’s proposing a vehicle mileage tax as a way to pay for Biden’s estimated $3 trillion proposal ahead of its official unveiling.
We’re facing a trillion-dollar backlog of roads, bridges, and other pieces of crumbling infrastructure.
That’s not just a challenge—it’s an opportunity to create jobs and help more Americans access safe, affordable transportation, no matter where they’re from.
— Secretary Pete Buttigieg (@SecretaryPete) March 26, 2021
A gas tax has been used to pay for the nation’s highway system, but the Tax Foundation noted the funding is decreasing due to a rise in electric cars. As a result, federal spending reportedly goes far beyond revenue being brought in.
“I think that 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,” Buttigieg said. “The gas tax used to be the obvious way to do it, it’s not anymore. 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.”
Critics of the administration’s proposal pointed out it would disproportionately impact lower income households, especially those in rural areas