WASHINGTON — Calling the current federal motor fuels tax "unsustainable" over the long term, the National Surface Transportation Infrastructure Financing Commission is recommending that the U.S. shift to a mileage-based usage fee by 2020.

In its final report, "Paying Our Way: A New Framework for Transportation Finance," the commission states that charging vehicle drivers a mileage fee embodies the "user pays" principle and more accurately aligns the costs and benefits of the surface transportation system to those who are using it.

"With the expected shift to more fuel efficient vehicles," said Robert Atkinson, the chair of the Financing Commission and president of the Information Technology and Innovation Foundation, "it will be increasingly difficult to rely on the gas tax to raise the funds needed to improve, let alone maintain our nation’s surface transportation infrastructure."

In order to support the transition from the gas tax to a mileage-based charge, the Financing Commission recommends a 10-cent-per-gallon increase in the federal gas tax (15 cents for diesel) and indexing the tax to inflation going forward. The gas tax, which is not currently indexed to inflation, has lost a third of its purchasing power since 1993, the last time the tax was increased.

Last week, DOT Secretary Ray LaHood said in an interview with the Associated Press that the department is considering a switch from fuel-based federal taxes to a mileage tax.

Trucking groups think mileage tax is like
dumping more water in a bucket full of holes

He was quickly refuted by the White House, which said the Obama administration is not pursuing such a plan, but later, U.S. House Transportation and Infrastructure Committee leaders came to the secretary’s defense, saying Congress, not the White House, will write transportation policy—which could very well include a mileage-based system.

In its reaction to the NSTIFC report, the American Trucking Associations said it agrees with the need for an adjustment in the federal fuel tax — provided more of those revenues are focused on programs to improve goods movement.

But, presumably referring to the proposal to raise diesel taxes 50 percent more than fuel taxes, they also noted that one sector should not be asked to bear an unfair burden, particularly during these difficult economic times.

Like most other critics of vehicle miles traveled (VMT) tax, ATA also noted that a VMT tax currently presents privacy concerns that are not only intrusive, but could lead to new forms of fraud and identity theft. The costs to implement and maintain the program also reduce the amount of funds that are directed towards infrastructure.

"The federal fuel tax has worked well for more than 50 years with the lowest collection and evasion costs," says ATA President Bill Graves. "There is no reason to transition to a new funding source within the 10-year timeframe suggested by the Commission, and certainly not to an alternative with as many problems as a VMT tax."

The Owner Operator Independent Drivers Association says more funds are needed, but asked why there was no thorough evaluation of how highway user dollars are currently spent.

"Before dumping more water into the bucket, we need to fix the gaping holes in the bottom," said Todd Spencer, Executive Vice President of OOIDA. "They neglected to address the most fundamental problem associated with financing our nation’s infrastructure – reining in and redirecting ineffective and wasteful spending on programs and initiatives that aren’t aligned with actual construction and maintenance for our highway system."

— via Truckinginfo.com