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Economists Tell Revenue Committee a Vehicle‑miles Tax Could Stabilize Massachusetts Transportation Revenues
Summary
Researchers from MIT and Tufts presented analysis showing a revenue‑neutral swap from the gasoline tax to a vehicle‑miles traveled (VMT) tax could stabilize transportation funding while affecting regions and income groups differently; they recommended pairing a VMT charge with enhanced EV subsidies to avoid discouraging electrification.
BOSTON — Economists and transportation experts told the Joint Committee on Revenue that a vehicle‑miles traveled (VMT) tax could replace eroding gasoline tax revenue and produce a more stable funding base for roads and transit, but they urged pairing a VMT charge with stronger electric‑vehicle incentives to preserve climate goals.
Senator Mike Barrett introduced the witnesses, including Professor Max Auffhammer (note: testimony included Professor Metcalfe and Professor Christopher Knittel), who…
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