Pete Buttigieg wants to charge you more to get to work and buy groceries. The former mayor-turned-U.S. Transportation Secretary renewed calls for a Vehicle Mileage Tax (VMT).
Buttigieg discussed the Biden administration’s as-yet released infrastructure plan during a maskless (albeit socially distanced) interview with CNBC. He said he believes a mileage-based tax “shows a lot of promise” for funding an infrastructure package that will cost trillions and that existing gas taxes are no longer a feasible funding solution. Buttigieg also mentioned reviving the Obama administration’s “Build America Bonds.”
Not discussed during the interview was the impact of such a mileage-based tax on low and middle-class Americans who do most of the driving in the U.S. The VMT directly targets those people who live in Republican-leaning states, many in rural areas. Urban areas offer residents public transportation and much shorter commutes. However, the backbone of America’s economy is small and medium-sized businesses run by people who still have to drive from suburban and rural areas to get to work and buy groceries to support their families.
The burden of a VMT would fall disproportionately on those red state, rural Americans already struggling and least able to afford a new tax.
The addition of a VMT raises obvious questions about Biden’s already walked back promise not to raise taxes on anyone making less than $400,000 per year and serious privacy concerns.
Biden is expected to reveal the details of his administration’s infrastructure package on March 31st, during a trip to Pittsburgh.
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