Energy

White House Advisers Tout The Benefits Of Taxing For How Much People Drive

REUTERS/Kamil Krzaczynski

Daily Caller News Foundation logo
Michael Bastasch DCNF Managing Editor
Font Size:

The White House Council of Economic Advisers (CEA) said a vehicle miles traveled, or VMT, tax could be an efficient way to ease congestion and pay for President Donald Trump’s infrastructure plan.

CEA released an infrastructure report on Wednesday, claiming Trump’s infrastructure plan could boost annual economic growth between 0.1 and 0.2 percent over 10 years. Trump’s plan includes reforms to streamline environmental permitting and federal funding to leverage $1.5 trillion in spending over 10 years.

But one major snag the White House has yet to address is how to fund $200 billion in new federal spending.

Trump allegedly endorsed a gas tax during a bipartisan meeting in February. Some Republicans want their party to take the issue seriously, but GOP Oklahoma Sen. Jim Inhofe called it “wishful thinking.”

Americans are split on raising the gas tax. A recent Quinnipiac University poll found 46 percent of Americans thought raising the gas tax was a good idea, but 44 percent did not support it. Support for a gas tax hike has actually shrunk since last year, according to the poll.

Conservative groups have come out against a gas tax increase, arguing it would wipe out some of the tax cuts Congress passed last year. Democrats largely support raising the gas tax.

The CEA’s report addresses funding plans for an infrastructure build-out, suggesting a range of fees to “encourage efficiency in use, provide signals from consumers and to suppliers about the value of future investments, and generate revenues.”

But not all fees are equal, according to CEA’s report.

CEA said “fuel taxes have historically acted as imperfect user fees, but conventional funding models are now under pressure from rising fuel efficiency and the use of electric vehicles, and congestion costs are high and rising in many urban areas.”

To get around electric vehicles and increased fuel efficiency, the report suggests a “user fees for vehicle miles traveled—as are being piloted in Oregon, for example—and highway tolls that vary with congestion can increase efficiency and raise needed revenues to pay for infrastructure improvements and additions to capacity.”

NOW WATCH:

Oregon began its VMT pilot program in 2015, charging drivers 1.5 cents per every mile they drove. Mileage data is collected through a special device installed in your car, and participants got refunded for any gas taxes they had to pay.

Oregon’s program does not count mileage driven out of state. Officials claim the program should end up costing drivers the same as a gas tax, assuming their car gets 20 miles per gallon. The idea is to find a new way to pay for roads that isn’t subject to changing technology.

Cars are continually becoming more fuel efficient, and electric cars don’t use gasoline, so they don’t pay the gas tax. Hybrids also cut into gas tax revenues.

Tolls on I-66 linking Northern Virginia to Washington, D.C. now vary with the flow of traffic. The idea is that tolls will go as high as the market will bear, which is already setting off commuters.

I-66 tolls hit $40 during the morning commute into D.C. in December. That was just one day after the toll topped out at more than $34. Tolls on I-66 change every six minutes based on commuter demand and current congestion.

While it does cut down on congestion, it’s not exactly a favorite of commuters. Virginia Transportation Secretary Aubrey Layne fired back at critics of the new tolling structure.

“No one has to pay a toll. You simply could have put another person in your car and avoid a toll,” Layne told The Washington Post.

“This is fair to everyone because everyone has a choice,” she said. “And that is why we did this. We wanted to change behavior, we don’t have the resources to continue to lay asphalt and have congested roadways.”

Follow Michael on Facebook and Twitter

Freedom of Speech Isn’t Free
The Daily Caller News Foundation is working hard to balance out the biased American media. For as little as $3, you can help us. Make a one-time donation to support the quality, independent journalism of TheDCNF. We’re not dependent on commercial or political support and we do not accept any government funding.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel