Transportation Secretary Pete Buttigieg said on Friday that the White House is exploring a mileage tax to help pay for a revamp of the nation’s infrastructure, which it is expected to introduce in the coming days. It isn’t any longer, but a “vehicle miles driven fee,” or “mileage tax,” or whatever you want to call it, might be a solution.
Buttigieg said in an interview with CNBC that a mileage tax “shows a lot of potential,” as President Joe Biden’s administration is under pressure to find ways to finance infrastructure upgrades, a task that has eluded the previous two presidential administrations.
Taxes on gasoline and diesel purchases finance road and public transportation upgrades in the United States, but Buttigieg claims that as more people turn to electric cars, the revenue stream will become less reliable. Furthermore, “We know it won’t be the solution permanently because we’ll be consuming less and less petrol. We’re attempting to electrify our fleet of vehicles “said the secretary.
“So, if there’s a way to do it that doesn’t raise the burden on the middle class, we can look into it,” he said, “but if there is, we’ve got to understand that’s still not going to be the long-term solution.” The president is expected to unveil his infrastructure plan in Pittsburgh on Wednesday, which could cost up to 3 trillion and be divided into two bills.
The initiatives are aimed at restoring decades-old and in need of maintenance highways, bridges, and airports, as well as improving education and paid leave. Biden could consider raising corporate taxes to 28 percent, Treasury Secretary Janet Yellen said this week, but would prefer to do so as part of a global minimum wage deal with other Organization for Economic Cooperation and Development countries.
The spending will follow Biden’s successful passage of the 1.9 trillion American Rescue Plan earlier this month, which is the third major relief bill passed by Congress to assist consumers and companies following the Covid-19 pandemic, which triggered a significant economic downturn. These expenditures raised the US debt and budget deficit to new highs in 2020, increasing congressional pressure on Biden, to find ways to fund his potential spending plans.
In response to Republican opposition, White House Press Secretary Jen Psaki told reporters on Friday that Biden “certainly believes there has been a tradition of support for investing in infrastructure.” Republicans have a significant majority in both, the House and Senate, and have expressed opposition to tax increases.
Bipartisan meetings in the White House, and he’s met with Democrats and Republicans to get measures taken in the past, and he’s confident that there will be an agreement on that going forward.
