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More Experts Back LaHood’s Mileage Tax Proposal

The National Surface Transportation Infrastructure Financing Commission, established by Congress to address the growing transportation infrastructure

Jul 31, 2020
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The National Surface Transportation Infrastructure Financing Commission, established by Congress “to address the growing transportation infrastructure investment deficit,” released a reporttoday advocating a 10-cent gas tax, to be replaced by a vehicle mileage tax in 2020.
According to the report, the Highway Trust Fundis facing a $400 billion deficit over the next five years, and the $40 billion provided by the stimulus for transportation improvements can only support the fund for three months. A broader long-term solution is needed, and the 15 experts on the commission recommend “immediate augmentation” of current funding measures — including the gas tax — followed by a pay-by-the-mile tax on drivers beginning in 2020.
Transportation Secretary Ray LaHood proposeda mileage tax last week but was quickly rebuffedby the White House, and the tax was largely disparaged in the press. I dug deeper into this issue and found that a number of energy and transportation experts backed the mileage taxas the most sensible and forward-thinking approach to the highway budget shortfall. The commission’s report provides further validation of this perspective.
However, it appears unlikely that the commission’s recommendations will be put into effect. On the campaign trail, then-candidate Barack Obama pledgednot to raise the gas tax because it would place “additional burdens on American families” in hard economic times. And when White House Press Secretary Robert Gibbs was asked about a mileage tax last Friday, he responded, “It is not and will not be the policy of the Obama administration.”
Perhaps the urging of congressionally appointed experts will give them pause to reconsider.
Camilo Wood

Camilo Wood

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Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing. Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers. Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
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