One of the most frequent claims from Joe Biden’s 2020 presidential campaign was that he would only seek tax increases on those earning more than $400,000 per year.
That was always a dubious promise, given his expensive big-government agenda, and now we’re seeing examples of how a tax-and-spend approach can hit everyday Americans. Biden won the 2020 election promising that he would never raise taxes on anyone earning less than $400,000 a year and would never impose a new tax
. Now his Secretary of Transportation announced he wants to both tax Americans earning less than $400,000 and do so with a new tax. Biden must fire Pete Buttigieg, repudiate his statement or admit that he was elected on a lieBiden and Vice President Harris made the pledge on at least 56 different occasions. The pledge also forbids the imposition of any 'new' taxes on Americans making less than $400,000. So the vehicle miles traveled tax would violate the Biden-Harris pledge both ways. Setting aside that the $400,000 goal post has been moved from individuals to households, which ropes in millions of additional families, a high-profile Cabinet member has touted a new tax that would necessarily hit anyone who drives a car (which is the vast majority of adults).
Transportation Secretary Pete Buttigieg praised the concept of imposing a nationwide Vehicle Miles Traveled tax in an interview. He said that there likely would be several different tax increases as part of expected infrastructure legislation, which he claims is necessary because “it’s got to be transformative.” The concept of a mileage tax has been around for years. One of the main reasons why the idea has become more prominent is the increasing use of hybrid and electric vehicles, which pay little or nothing in gas taxes. As such, federal gas tax revenue has flattened.
There are two ways of implementing the potential new tax.
One would involve annual odometer readings. That would be vulnerable to rollback devices that can change a car’s mileage readout, and it would be a logistical nightmare to perform on all cars across the country every year.
The other method would use GPS trackers to monitor the distance a car travels. That also has implementation concerns, such as whether older cars would have to have the devices retrofitted in and whether manufacturers would be forced to add them to new cars.
In addition, there are serious privacy concerns regarding whether a vehicle’s GPS data could be used to monitor individual drivers. Any such system would need to have strict rules in place to safeguard civil liberties. That’s only the beginning of problems with imposing a nationwide mileage tax. Supporters of the tax regularly claim that it would replace the gas tax. There are good reasons to be skeptical of that promise. The astonishing size of current spending plans would require as much tax revenue as the federal government can get, meaning that any sort of tax cut is unlikely. Simply not paying for infrastructure spending by adding to the federal debt would be unwise, given the nation’s crumbling finances and growing deficits in the highway fund.
Thus, a mileage tax would almost certainly be layered on top of the gas tax, meaning a tax increase for the vast majority of families. However, even if the gas tax were to be eventually phased out, supporters of a mileage tax are clear that the main goal of the tax is to bring in more revenue than the gas tax currently provides.
Either way, that spells a tax increase, and one that will disproportionately hit blue-collar workers who can’t telecommute.
Another reason to oppose the mileage tax is that it’s based on the idea that we need the federal government to meddle with infrastructure development more than it already does.
A Vehicle Miles Traveled tax would also be vulnerable to bureaucratic micromanagement, especially if it’s done with a GPS system. The federal government could charge different rates per mile, based on location, time of day, or traffic volume, and thus politicize the way we drive by playing favorites.
Those who promote the new tax-and-spend mega-package will insist that the only choices are voting for their progressive grab bag or allowing our roads and bridges to fall apart. That’s a false choice.
It also puts a big paradox out there. Because we know that Buttigieg and other Democrats don’t just want to tax motorists, but want to drive them off the roads entirely.