CBO: Taxing mileage a ‘practical option’ for revenue enhancement

Pete Kasperowicz
The Hill

The Congressional Budget Office (CBO) this week released areport that said taxing people based on how many miles they drive is a possible option for raising new revenues and that these taxes could be used to offset the costs of highway maintenance at a time when federal funds are short.

The report discussed the proposal in great detail, including the development of technology that would allow total vehicle miles traveled (VMT) to be tracked, reported and taxed, as well as the pros and cons of mandating the installation of this technology in all vehicles…

…The report was requested by Senate Budget Committee Chairman Kent Conrad (D-N.D.), who held a hearing on transportation funding in early March. In that hearing, Transportation Secretary Ray LaHood said the Obama administration is hoping to spend $556 billion over the next six years, much of which would go to federal transportation improvement projects.

Conrad said in response that federal funds are tight, and in asking for recommendations on how to raise that money, he noted the possibility of a VMT tax as a way to solve the problem of collecting less in taxes as people move to more fuel-efficient vehicles….

The entire article is at The Hill.

Update: Jeff G. at Protein Wisdom says it all for us, “…Our freedoms are being taken away, one new ‘mandate’ at a time…” And Smitty, at The Other McCain, has a few words about Kent Conrad.

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