WASHINGTON (WTVO) – A national per mile tax might soon be tested as an option to replace the federal gas tax.
Currently, drivers pay the federal gas tax when filling their car up at the pump. With the increase in electric and hybrid cars however, less people are buying gas. This new tax would lead everyone who drives to pay a tax, regardless of if they purchase gas or not.
Vehicle mileage travel fees are usually measured over a one year period, according to Forbes. This means that it will cost car owners extra every time they use their car that year. The more miles a person drives, the more money they will pay to the government.
The Vehicle Mileage Tax pilot program is a part of President Joe Biden’s $1 trillion infrastructure package, and there are privacy concerns that come with tracking a vehicle’s mileage and the government knowing when and where a person drives.
Analysts say that this new fee is still likely at least a decade away from being implemented.