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"As fuel taxes plummet, states weigh charging by the mile instead of the tank.” That was the headline of a recent AP story, which should scare freedom-loving citizens everywhere. And you can place the blame squarely on government-subsidized EVs for this terrible new development. The background is that state and federal gasoline taxes aren’t raising “enough” money these days to pay for roadway construction and maintenance. And a big reason for the growing shortfall is the increase in electric vehicles. EVs get massive tax subsidies to convince people to buy them, but their owners don’t pay gasoline taxes, for the...

Following a slowly growing national movement, Pennsylvania may be ready to try the idea of charging drivers a mileage-based fee to make up millions in transportation revenue lost to more fuel-efficient hybrid and electric cars. Melissa J. Batula, the Pennsylvania Department of Transportation’s acting executive deputy secretary, said the department is working with the General Assembly to draft legislation establishing fees for those who pay little or nothing toward road maintenance. That’s because the state gets about 75% of its road money from the gasoline tax. A commission appointed last year by Gov. Tom Wolf recommended a series of steps...

American drivers could soon trade paying taxes on gas at the pump for owing the government annual 'per-mile user fees,' under a new pilot program recently passed by the Senate in Joe Biden's $1.2 trillion bipartisan infrastructure deal. The bill passed a Senate vote on Tuesday and will go on to the House of Representatives. The massive deal puts $125 million toward exploring the possibility of a federal vehicle miles traveled tax (VMT) by funding the launch of federal, state and local VMT pilot programs. It gives Transport Secretary Pete Buttigieg the ability to award grants to local and regional...

The battle is on, as President Biden pushes a raft of tax hikes to pay for roads, bridges, green energy, and expansive new social programs. His plans are generally popular—but nobody wants to be the one footing the bill. Business groups argue that instead of raising corporate taxes to pay for infrastructure, as Biden wants to do, the government should rely on user fees such as tolls and dedicated taxes, so that people getting the benefit of the new asset bear the cost. Higher corporate taxes can depress investing, send US companies overseas and trigger aggressive tax avoidance. Douglas Holtz-Eakin,...

The surface transportation construction industry has long had to rely on Washington for its prosperity. We spend most years holding our breath and hoping we will receive more Federal funding to fix our crumbling roads, bridges and highway systems. Currently in the United States, 7 percent of bridges are structurally deficient, and 19 percent of major highway pavements have deteriorated. Yet, our existing financing structure has few tools to address the looming reconstruction challenges facing existing infrastructure. In 2020, Congress passed a one-year extension of the Fixing America's Surface Transportation (FAST) Act. While the one-year extension of the FAST Act...

Congressional leaders passed a new stimulus package meant to alleviate the financial pain of the coronavirus, but it won’t cure all that ails PennDOT’s pocketbook. PennDOT press secretary Alexis Campbell said Monday afternoon it wasn’t clear if the relief plan will cover the $600 million funding gap plaguing PennDOT. Early media reports indicate that $10 billion of financial relief could be distributed to the 50 states’ highway systems, though it’s unclear how much would come Pennsylvania’s way. State Sen. Pat Browne, a Lehigh County Republican and longtime chairperson of the Appropriations Committee, said Tuesday that transportation-specific wording included in the...

The U.S. Interstate Highway System is the backbone of American commerce and personal travel. Funded on a pay-as-you-go basis largely through federal excise taxes on motor fuel, today it accounts for 25% of total vehicle-miles traveled despite accounting for just 2.5% of total road network lane-miles. Yet, much of the Interstate system, construction of which began in the 1950s, is nearing the end of its functional life, along with the infrastructure of other surface transportation modes. Over the next two decades, trillions of dollars of investment will be needed to rehabilitate and in some cases rebuild this infrastructure, according to...

A freelance automotive journalist worries a testing site operated by the Illinois Tollway Authority could be for more than just testing automated tollway technology. Paul Brian said he’s noticed a site with various sensors on northbound I-294 for years with a sign that reads “for testing purposes only.” Illinois Tollway Authority officials said the site is used for testing various sensors, but only for tollway purposes. The site, established in 2015, had an initial price tag of $2.7 million. “The Illinois Tollway has used the test site to study a range of systems – some of which were adopted and...

Here are two recent events you might have missed: In March, House speaker Paul Ryan was widely quoted as saying, “The last thing we want to do is pass historic tax relief and then undo that, so we are not going to raise gas taxes.”The next month, in California, Republicans submitted 54 percent more than the required signatures to put on the November ballot a measure that would repeal the 2017 state law increasing gasoline and diesel taxes. Meanwhile, roads in Los Angeles are in such bad shape that it costs the average driver $892 a year in additional vehicle...

The federal government would get more bang for their buck if U.S. drivers were charged directly for their use of highways through tolls or mileage fees, a new study from the Congressional Budget Office (CBO) says.The report from Congress's budgetary scorekeepers says current "spending on highways does not correspond very well with how the roads are used and valued." The CBO said mechanisms like tolling, mileage fees or congestion pricing could be considered to fund transportation projects in lieu of relying mostly on gas tax revenue."Almost all federal spending for highways occurs through formula grants to state and local governments,...

The federal Highway Trust Fund is running out of money, and some senators have proposed to fix the problem by raising gas taxes. This, however, is the wrong solution because it treats the symptom, and not the underlying reason for the shortfall. Here are five reasons for not increasing gas taxes. 1. The problem is not a shortage of funds but an excess of spending. For more than 50 years after Congress created the Highway Trust Fund in 1956 it was able to avoid a shortage of funds by a simple measure: it didn't spend more than was collected in...

Rep. Earl Blumenauer (D-Ore.) on Tuesday reintroduced legislation that would require the government to study the most practical ways of taxing drivers based on how far they drive, in order to help fund federal highway programs. Blumenauer's bill, H.R. 3638, would set up a Road Usage Fee Pilot Program, which he said would study mileage-based fee systems. He cast his bill as a long-term solution for funding highway programs, and proposed it along with a shorter-term plan to nearly double the gas tax, from 18.4 cents to 33.4 cents per gallon. "As we extend the gas tax, we must also...

(CNSNews.com) -- Transportation Secretary Ray LaHood was adamant in telling CNSNews.com on Wednesday that the Obama administration does not favor tracking and taxing Americans for every mile they drive--a so-called Vehicular Miles Traveled (VMT) tax. LaHood had personally suggested that the administration look at a VMT early in his tenure at the Transportation Department and it had recently been reported that the administration was considering such a tax. In a Feb. 20, 2009 interview with the Associated Press LaHood said, "We should look at the vehicular miles program where people are actually clocked on the number of miles that they...

Obama floats plan to tax cars by the mile By Pete Kasperowicz - 05/05/11 07:45 AM ET The Obama administration has floated a transportation authorization bill that would require the study and implementation of a plan to tax automobile drivers based on how many miles they drive. The plan is a part of the administration's "Transportation Opportunities Act," an undated draft of which was obtained this week by Transportation Weekly. This follows a March Congressional Budget Office report that supported the idea of taxing drivers based on miles driven. Among other things, CBO suggested that a vehicle miles traveled (VMT)...

An Oregon congressman says he wants to test having a government GPS unit in every car so a tax could be imposed on the miles driven. The proposal, H.R. 3311, which calls for a test project costing $150 million-plus, was introduced by Rep. Earl Blumenauer, D-Ore."Oregon has successfully tested a Vehicle Miles Traveled fee, and it is time to expand and test the VMT program across the country," he said in a statement on his website. "A VMT system can better assess fees based on use of our roads and bridges, as well as during times of peak congestion, than...

Mileage tax might be road bill funding source, Inhofe says By JIM MYERS World Washington Bureau Published: 3/26/2009 2:31 AM WASHINGTON — U.S. Sen. Jim Inhofe said Wednesday that a proposal to tax motorists on the miles they drive is being looked at as an alternative method to funding much-needed road projects. Conceding that such an approach could be awkward, the Oklahoma Republican said such proposals must be part of the discussion as he and other key member of Congress begin putting together the next huge transportation spending authorization bill. "No one thing is going to do it,'' Inhofe said,...

As gas prices continue to top $2 a gallon, all those drivers of fuel-efficient cars may not have reason to gloat for much longer. Oregon is worried that too many Honda Insights and Toyota Priuses hitting the roads will rob it of cash it expects out of its 24-cent-a-gallon tax. So the Beaver State is studying ways to ensure that "hybrid" car owners pay their "fair share" of taxes for the miles they drive. That means allowing the taxman to catch up to hybrid owners just as often as he catches up to gas guzzling SUV drivers. And if Oregon...