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To Do: Enact a National Road User-Charge System

To Do: Enact a National Road User-Charge System
Knowledge Base Article in: Tech Policy To-Do List
Last Updated: February 8, 2025

Recommendation

Congress should replace the national fuel tax with a vehicle miles travelled (VMT) tax.

Details

Congress should pass a national road user-charge system (also known as a vehicle miles traveled tax, or VMT) as an alternative funding mechanism for surface transportation. As electric vehicles (EVs) become more widely available and GPS and 5G technology improves, now is the time to transition from a national fuel tax to a VMT. Most new cars are now “smart vehicles” with onboard communications systems, and VMT chips and related technology are now cheaper than ever. Establishing a pilot program for a national passenger vehicle program for VMTs will begin the process of educating the public and establishing the infrastructure for a VMT tax.

Keep reading:

Robert D. Atkinson, “Letter to House and Senate Transportation Committee leaders Regarding a Vehicle Miles Traveled (VMT) Tax” (ITIF, March 2021), https://itif.org/publications/2021/03/03/letter-house-and-senate-transportation-committee-leaders-regarding-vehicle/.

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