Biden Administration Is Contemplating a New Tax That Would Disproportionately Impact Rural Americans
Beth Baumann
Posted: Jan 23, 2021 11:05 AM
When President Joe Biden announced former South Bend, Indiana Mayor Pete Buttigieg as his pick for Transportation Secretary, many scratched their heads. Why would he tap someone who oversaw a small budget, in a small town, in the midwest for such a roll? That puzzle is finally coming together.
It turns out that Biden favors Buttigieg's transportation views, specifically the idea that America should move away from the gas tax and instead opt into a tax based on the number of miles a person travels. It would be a new way to provide cash for the Highway Trust Fund, which currently funding from the federal gas tax. As it currently stands, the federal gas tax is 18.4 cents per gallon and 24.4 cents per gallon for diesel.
Liberal states, like California, Oregon, Washington State, and Colorado are already contemplating this so-called "alternative."
Biden's administration would have to figure out how to pay for his $1 trillion infrastructure plan, which includes $160 billion for the transportation department.
During his confirmation hearing with the Senate Commerce, Science, and Transportation Committee on Thursday, Buttigieg explained his take on the gas tax.
"I think all options need to be on the table. As you know, the gas tax has not been increased since 1993, and it has never been pegged to inflation, and it's one of the reasons why the current state of Highway Trust Fund is that there's more going out than coming in," Buttigieg said about a potential tax increase. "In the long term, we need to bear in mind also that as vehicles become more efficient and as we pursue electrification, sooner or later, there will be questions about whether the gas tax can be effective at all."
Instead, the transportation nominee wants to consider taxing Americans on the number of miles they drive.
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https://townhall.com/tipsheet/bethbaumann/2021/01/23/biden-administration-is-contemplating-a-new-tax-that-would-disproportionately-impact-rural-americans-n2583595