Thursday, February 22, 2018

Trump signals he's open to mileage tax with praise of Oregon program

The White House on Wednesday praised an experimental program in Oregon that charges a mileage tax to volunteer drivers, adding to signals that President Donald Trump is open to finding new revenue sources to pay for his proposed infrastructure program. Many of Trump’s fellow Republicans, however, dislike the idea of a transportation tax as it would go against the grain of the party’s push to lower taxes and could hit Republican-leaning rural areas harder than cities. In the annual Economic Report of the President, the White House described Oregon - a Democratic-leaning state where environmental issues are a priority for many voters - as a “pioneer” in transportation funding and highlighted its funding initiative, which began in 2015. Volunteers are charged a fee of 1.7 cents for each mile driven on state roads. In return, drivers get rebates for state fuel taxes. As of the end of 2016, only about 700 people were participating in the program, which is intended to gather data and generate consumer feedback. “The program offers tangible evidence that a tax on vehicle miles traveled is a promising alternative to relying on fuel taxes,” the report said. Kevin Hassett, chairman of the White House Council of Economic Advisers, described Oregon’s mileage tax as “innovative” in a conference call with reporters and made clear the Trump administration was open to looking at ways to raise revenue for infrastructure projects...more

Rural residents already spend a large share of their income on transportation, and a tax of this type would increase that disparity.  And guess which population would receive the most benefits from these tax revenues? That's right, urban residents. This is the opposite of a Robin Hood tax, its a Sheriff of Nottingham tax.  

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