The Biden administration is considering imposing a tax on vehicle mileage on Americans as a way to fund a multi-trillion-dollar infrastructure plan that President Biden will announce, Transportation Secretary Pete said Friday Buttigieg.
“I think that shows a lot of promise … If we believe in the so-called principle that the user pays, the idea that part of how we pay for roads is that you pay based on what you drive,” Buttigieg told CNBC in an interview .
“The gas tax was the obvious way to do it; it is no longer so … So a so-called vehicle mileage tax or a mileage tax, whatever you want to call it, could be the way to do it. “
The rate would impose drivers for the number of miles they travel, rather than the amount of gasoline they consume, which is no longer a reliable revenue stream with so many electric cars on the road.
“I’m really looking forward to making sure there are sustainable funding flows,” Buttigieg said.
“You hear a lot here‘ maybe ’because all of these things need to be balanced and could be part of the mix,” the secretary warned, saying the mileage tax is only a consideration at the moment.
Buttigieg later added that the White House is also considering recovering Build America bonds, which are a special type of municipal bonds first introduced by the Obama administration that have interest costs covered by the U.S. Treasury.
He said the bonds show “a lot of promise in terms of how we take advantage of this type of financing.”
His comments came a day after the first Biden presidency press conference, where he announced plans to present a $ 3-4 trillion infrastructure bill in Pittsburgh next week.
The president argued that rebuilding U.S. physical and technological infrastructure was a key priority not only for boosting a slow economy, but for remaining competitive with foreign rivals such as China.
Buttigieg said a plan to rebuild the nation’s roads, bridges and waterways would lead to a significant return on investment.
“When you think about infrastructure, it’s a classic example of the kind of investment that has a return on that investment,” the presidential hopeful told CNBC.
“This is one of the many reasons why we believe this is so important. This is a job vision as much as an infrastructure vision, a climate vision and more. “
A day earlier, Buttigieg urged the House Transportation and Infrastructure Committee to make a “generational investment” to improve infrastructure while fighting climate change and racial inequality.
“There is an almost universal recognition that a broader recovery will require a national commitment to fix and transform U.S. infrastructure,” the secretary said.