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Biden Infrastructure Plan Will Not Include Mileage Fee, Gas Tax Hike

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President Joe Biden is set to introduce a $3-$4 trillion-dollar infrastructure plan that includes manufacturing support for the production of electric vehicles, along with the addition of upwards of 500,000 EV chargers across the U.S. But two things the Biden infrastructure plan will not include, it seems, is an increase in gasoline taxes or a fee for the number of miles vehicle owners drive in a given year.

This news comes to us from newly-appointed Transportation Secretary Pete Buttigieg, who made waves this week when he suggested that a “vehicle-miles-traveled tax or mileage tax” was on the table for the Biden infrastructure plan. However, Buttigieg walked back those comments this week by saying that such a fee “is not part of the conversation about this infrastructure bill.” He also said that a gas tax hike is not under consideration, either.

“I want to reiterate the president’s central commitment here,” Buttigieg said. “If you’re making less than $400,000 a year, this proposal will not involve a tax increase for you.”

President Biden previously said that he would outline his infrastructure proposal on Wednesday, including the details on how it will be paid for. The federal government has not increased the federal gas tax of 18.4 cents-per-gallon since 1993, though some lawmakers have argued that a mileage tax makes sense in light of the fact that electric vehicle owners are not currently paying federal gas taxes.

Since taking office earlier this year, Biden has focused on speeding up EV adoption and the transition to clean energy, directing the entire federal fleet to convert to electric powerdiscussing the reduction of greenhouse gases with automakers, and rejoining the Paris Climate Agreement. But some feel like more is needed from the White House. As we recently reported, lawmakers are asking Biden to ban new ICE-powered vehicle sales by 2035, while automakers are also stepping in and urging the president to support a comprehensive EV plan to entice consumers to make the switch.

We’ll have more on Biden’s infrastructure plan soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

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Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. MajB Retired

    So EVs get a free ride and pay no taxes for their use of federally funded roads?

    Reply
  2. Mark L Bedel

    I would imagine that once they become a larger share of the propulsion preference, one will almost assuredly see them paying their fair share. The transition will have a very shallow incline/decline model as the shear number of ICE vehicles is huge when compared.

    The relative purchase price of EV’s is still high relative to a comparable ICE vehicle, even though a case can be made for lower overall cost of ownership over time, that’s a much harder sell due to its lack of immediate impact on one’s budget. Plus, it’s still considered new tech and there are more late adopters out there than there are early adopters.

    Reply
    1. royl

      Problem: “assuredly see them paying their fair share”, What???? We are full of programs/ give aways/ friends of politicos that do not now, nor will they being “paying their fair share”. I never count on politicos to do what is right for the country, I do count on them to do what is right for their own pocket book.

      Reply
  3. Mike

    How can you say this, he hasn’t told the truth about anything yet. To say that someone like him, won’t add taxes or a fee, is laughable. I’m sure all 40 million of his voters wouldn’t mind tho. Half don’t drive and the other half make so much money, they don’t care.

    Reply
    1. Stu

      Please let’s not get started on the truth issue from the Executive office. The former Chief Executive never knew the meaning of the word. America needs a big turnaround in behaviour and thinking towards unifying all citizens for the benefit of the nation. Change is difficult but inevitable and America needs to lead and inspire again after four difficult years and the pandemic too.
      I am a veteran and I just bought a new Mach E. It is already good for the economy as it supports the dealership payroll, the manufacturer’s health and innovation for the future and new income for the charging station networks.
      I am sure that the majority of electric vehicle owners would accept a reasonable road tax fee attached to the recharging KWh cost.

      Reply
      1. royl

        What??? You just bought a ford Mach E, made in MEXICO, and this is good for our economy how??? I guess the dealership made a few bucks…this is the type of thing I’d expect from china joe. The wokes would “accept a reasonable road fee…”, what the hell is this. The roads have been built with state and fed (sometimes local) $$$, fuel tax being the major contributor, the made in mexico mach e drivers are getting a free ride, things such as battery disposal/recycling costs for these vehicles should/must be included on the front end, otherwise another free ride. Charging station Networks?

        Reply
      2. Todd Priest

        Four years of massive growth you mean? How can we unify when you liberals act as you do?? I’ll never unify with you people. You are clearly the enemy.

        Reply

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