Administration nixes idea of taxing miles driven

ByABC News
February 20, 2009, 5:24 PM

WASHINGTON -- President Barack Obama will not adopt a policy to tax motorists based on how many miles they drive instead of how much gasoline they buy, his chief spokesman said Friday.

Press secretary Robert Gibbs commented after Transportation Secretary Ray LaHood told The Associated Press that he wants to consider the idea, which has been proposed in some states but has angered many drivers.

"It is not and will not be the policy of the Obama administration," Gibbs told reporters, when asked for the president's thoughts about the policy and LaHood's remarks.

Gasoline taxes that for nearly half a century have paid for the federal share of highway and bridge construction can no longer be counted on to raise enough money to keep the nation's transportation system moving, LaHood told the AP in an interview Thursday.

"We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled," the former Illinois Republican lawmaker said Thursday.

LaHood spokeswoman Lori Irving said Friday that the secretary was speaking of the idea only in general terms, not as something being implemented as administration policy.

Most transportation experts see a vehicle miles traveled tax as a long-term solution, but Congress is being urged to move in that direction now by funding pilot projects.

The idea also is gaining ground in several states. Governors in Idaho and Rhode Island are talking about such programs, and a North Carolina panel suggested in December the state start charging motorists a quarter-cent for every mile as a substitute for the gas tax.

A tentative plan in Massachusetts to use GPS chips in vehicles to charge motorists by the mile has drawn complaints from drivers who say it's an Orwellian intrusion by government into the lives of citizens. Other motorists say it eliminates an incentive to drive more fuel-efficient cars since gas guzzlers will be taxed at the same rate as fuel sippers.

Besides a VMT tax, more tolls for highways and bridges and more government partnerships with business to finance transportation projects are other funding options, LaHood, one of two Republicans in Obama's Cabinet, said in the interview Thursday.