ASSOCIATION INSIGHTS
ATA: A Vehicle Miles Traveled Tax Could Be the Future of Our Highway Trust Fund
But getting there will take time, careful planning, and wise leadership.
W
ith Washington now channeling its energy toward infrastructure legislation, the policy discussions on
Capitol Hill will ultimately be driven by the question of funding. How do we cover dire and urgent maintenance costs in the short term and also settle on a long- term funding mechanism that is both equitable and sustainable?
As the leading payer into America’s Highway Trust Fund (HTF), the trucking industry has an important and helpful perspective to offer this debate. Despite being only 4% of vehicles on the road, trucks currently pay nearly half the entire HTF user-fee tab. The National Highway System enables us to keep the American economy humming, and we’re proud to pay our fair share to help ensure all motorists benefit from a safe and sound interstate network to get people and things where they need to go.
That’s why we’re committed to working in earnest with Congress and the Biden Administration to turn big, bold plans of modernizing and revitalizing our aging national infrastructure into a reality this year. Just as we had America’s back through the height of the pandemic – from the early-day runs on groceries and toilet paper, to the deliveries of those first shots in arms – the nation’s 7.5 million-strong trucking family is ready to play a
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constructive role in helping our country build back better and stronger than ever before.
Political inertia, increases in fuel efficiency, and the rise of electric vehicles all make clear that the federal fuel tax will one day become obsolete as the Highway Trust Fund’s primary revenue generator. Recently, a vehicle miles traveled (VMT) tax system – which would assess a fee to every vehicle for each mile driven – has gained steam in some policy circles as a viable alternative to the fuel tax that can lead our transition away from a carbon- based user fee.
Although a VMT system may very well be the funding mechanism of the future, its viability is far more complicated once you lift up the hood. A new report from the American Transportation Research Institute (ATRI)
details the many practical and political obstacles that policymakers will need to navigate to ensure a smooth transition. Moving from a federal fuel tax to a national VMT tax won’t be as simple as switching lanes.
This will be a long road and a long-term process that takes time, careful planning, and wise leadership. Getting there will require cooperation, commitment, and contributions from all stakeholders. Most importantly, we must be clear-eyed about the challenges that lie ahead in order to avoid costly pitfalls that threaten to undermine our shared goal of increased funding for roads and bridges.
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