via the Washington Examiner:
CBO suggests taxing drivers by the mile
by Pete Kaperowicz | March 14, 2016
An economist at the Congressional Budget Office suggested on Monday that the federal government could start charging people based on how far they drive in order to generate more government revenues to spend on highway projects.
Chad Shirley, CBO’s deputy assistant director for microeconomic studies, gave a presentation that says federal gas tax revenues are falling short of federal spending on highway programs. But to resolve that problem, Shirley didn’t propose less federal spending, and instead offered three suggestions.
Shirley said that one way to charge drivers more is to implement “vehicle-miles traveled charges.”
Some members of Congress and some officials in the Obama administration have argued for years that a vehicle miles traveled tax, or a “VMT” tax, should be imposed in order to create more federal highway revenue. The Obama administration in 2011 floated a draft bill that would have created a VMT.
Among other things, that plan foresaw the installation of equipment on people’s cars and trucks that would measure how far they drive, and the collection of taxes electronically through a reading of those devices at gas stations.
CBO’s presentation also said the government could get more money from drivers by charging them more when traffic is bad. Shirley calls that “congestion pricing.”
A third option, Shirley said, would be “allowing tolling on additional existing interstates.” (Read More)
Read the full article at the Washington Examiner