Pete Buttigieg, President Joe Biden’s Secretary of Transportation, has just suggested that the US government should institute of a mileage tax to pay for the government’s massive overspending. This tax would be based on how many miles you drive your vehicle.
Of course, all levels of governments love the revenue they obtain through gas taxes, which vary from state to state. But people buying electric cars are avoiding gas taxes and a mileage tax would change that. It would also result in people with gas vehicles being taxed twice.
The Blaze explains:
Secretary of Transportation Pete Buttigieg suggested Friday that implementing a mileage tax on American drivers could be a possibility as the Biden administration considers ways to pay for their anticipated multi-trillion-dollar “green” infrastructure plan.
Buttigieg is calling for “a generational investment in infrastructure,” but has offered few details regarding how it might be financed, as the Associated Press noted earlier this week.
The former mayor of South Bend, Indiana, was asked about the possibility of a mileage tax as an option during an interview on CNBC, and he replied, “So, I think that shows a lot of promise,” explaining:
“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. So a so-called Vehicle Miles Traveled tax or mileage tax, whatever you want to call it, could be a way to do it.”
The taxes that Americans pay on fuel is collected in various ways from applying an excise or sales tax at the pump to secretly applying it at the wholesale level.
Tax Foundation reveals the states with the highest and lowest gas taxes as of July, 2020:
California pumps out the highest tax rate of 62.47 cents per gallon, followed by Pennsylvania (58.7 cpg), Illinois (52.01 cpg), and Washington (49.4 cpg). You’ll find the lowest gas tax in Alaska at 13.77 cents per gallon, followed by Missouri (17.42 cpg) and Mississippi (18.79 cpg).
Below is the Tax Foundation’s chart on how much Americans pay in gas taxes by state. The data was supplied by the American Petroleum Institute.