Trump signals open to mileage tax with praise of Oregon program

The White House on Wednesday praised an experimental program in Oregon which charges a mileage tax to volunteer drivers, adding to signals which President Donald Trump is usually open to finding brand-new revenue sources to pay for his proposed infrastructure program.

inside the annual Economic Report of the President, the White House described Oregon as a “pioneer” in transportation funding as well as highlighted its funding initiative, which began in 2015.

Volunteers are charged a fee of 1.7 cents for each mile driven on state roads. In return, drivers get rebates for state fuel taxes. As of the end of 2016, only about 700 people were participating inside the program, which is usually intended to gather data as well as generate consumer feedback.

“The program offers tangible evidence which a tax on vehicle miles traveled is usually a promising alternative to relying on fuel taxes,” the report said.

Trump last week called for using $0 billion in brand-new federal spending over 10 years in an effort to stimulate $1.5 trillion in infrastructure spending, largely through states shouldering most of the costs as well as relying on unspecified spending cuts to pay for repairs.

The report also boosted the idea of driverless cars, saying widespread use of them could lift economic growth as well as create jobs.

The idea of a transportation tax, however, could prove controversial with Trump’s fellow Republicans. Many of the party’s lawmakers dislike the idea.

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