Get Ready for Mileage Tax Folks: Mileage Tax Might Be Road Bill Funding Source, Inhofe Says
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, citing the backlog of transportation needs and a fuel tax that no longer raises enough revenue.
As the top Republican on the Senate’s Environment and Public Works Committee, which has jurisdiction over transportation legislation, Inhofe will play a major role in crafting the bill to replace the current law, which expires in September.
Inhofe spoke during an interview after a hearing with U.S. Transportation Secretary Ray LaHood.
Disappointing several members of the committee, LaHood once again ruled out an increase in the fuel tax as a way to generate more money for transportation projects. He cited the difficulty in raising taxes during hard economic times.
Even though the White House strongly came out last month against LaHood’s suggestion that lawmakers should discuss taxing motorists on miles driven, he seemed to leave that idea on the table.
Inhofe confirmed that such a proposal is still alive.
“We are going to try to come up with something in terms of a VMT (vehicle miles traveled) approach,” he said, agreeing with LaHood that a fuel tax increase should not be one of the options.
“On the VMT, no one has figured out how you can do that other than the honor system, which never works.”
Inhofe said one possible method could be checking a vehicle’s mileage when its registration is renewed.
A VMT tax could be layered on top of the fuel tax, which might be reduced dramatically or eliminated altogether, Inhofe said.
Automobiles, especially hybrids, are not using as much fuel as they once did, he said, explaining why the fuel tax no longer can be viewed as a reliable source for transportation projects.
Inhofe said other options under review include indexing the fuel tax to inflation and limiting the use of money in the trust fund to highways and bridges.
Supporters of mass transit projects and other programs would have to look elsewhere for funding, he said.
Inhofe said the amount of the next multiyear transportation bill needs to come in at about $400 billion.
His office reported that the last bill totaled $286.4 billion.
Inhofe, who is proud of his conservative voting record in Congress, said, “I know it sounds funny coming from me, being a big spender in that area, but I am.”
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Mileage tax is an extremely libertarian tax. If you drive on the roads, you get to pay for them.