Mileage Tax Runs Out of Gas

Obama nixes LaHood's vehicle miles traveled (VMT) suggestion

Published in CSP Daily News

WASHINGTON -- President Barack Obama will not adopt a policy to tax motorists based on how many miles they drive instead of how much gasoline they buy, his chief spokesperson said late Friday. Press secretary Robert Gibbs commented after Transportation Secretary Ray LaHood told the Associated Press that he wants to consider the idea, which has been proposed in some states but has angered many drivers.

"It is not and will not be the policy of the Obama administration," Gibbs told reporters when asked for the president's thoughts about the policy and LaHood's remarks.

Gasoline [image-nocss] taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving, LaHood told the AP in an interview Thursday. "We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled," the former Illinois Republican lawmaker told the news agency.

LaHood spokesperson Lori Irving said Friday that the secretary was speaking of the idea only in general terms, not as something being implemented as administration policy.

Most transportation experts see a vehicle miles traveled tax as a long-term solution, but Congress is being urged to move in that direction now by funding pilot projects.

The idea also is gaining ground in several states. Governors in Idaho and Rhode Island are talking about such programs, and a North Carolina panel suggested in December the state start charging motorists a quarter-cent for every mile as a substitute for the gasoline tax.

A tentative plan in Massachusetts to use GPS chips in vehicles to charge motorists by the mile has drawn complaints from drivers who say it is an Orwellian intrusion by government into the lives of citizens. Other motorists say it eliminates an incentive to drive more fuel-efficient cars since gasoline guzzlers will be taxed at the same rate as fuel sippers.

Besides a VMT tax, more tolls for highways and bridges and more government partnerships with business to finance transportation projects are other funding options, LaHood, one of two Republicans in Obama's Cabinet, said. "What I see this administration doing is this-thinking outside the box on how we fund our infrastructure in America," he said.

LaHood said he firmly opposes raising the federal gasoline tax in the current recession.

The program that funds the federal share of highway projects is part of a surface transportation law that expires September 30. Last fall, Congress made an emergency infusion of $8 billion to make up for a shortfall between gasoline tax revenues and the amount of money promised to states for their projects. The gap between money raised by the gasoline tax and the cost of maintaining the nation's highway system and expanding it to accommodate population growth is forecast to continue to widen.

Among the reasons for the gap is a switch to more fuel-efficient cars and a decrease in driving that many transportation experts believe is related to the economic downturn. Electric cars and alternative-fuel vehicles that don't use gasoline are expected to start penetrating the market in greater numbers.

A national transportation commission is expected to release a report next week recommending a VMT. The system would require all cars and trucks be equipped with global satellite positioning technology, a transponder, a clock and other equipment to record how many miles a vehicle was driven, whether it was driven on highways or secondary roads, and even whether it was driven during peak traffic periods or off-peak hours.

The device would tally how much tax motorists owed depending upon their road use. Motorists would pay the amount owed when it was downloaded, probably at gas stations at first, but an alternative eventually would be needed.

Rob Atkinson, chairman of the National Surface Transportation Infrastructure Financing Commission, the group that is developing future transportation funding options, said moving to a national VMT would take about a decade.

Privacy concerns are based more on perception than any actual risk, Atkinson said. The satellite information would be beamed one way to the car and driving information would be contained within the device on the car, with the amount of the tax due the only information that's downloaded, he said.