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Economists tell committee vehicle‑miles tax could replace shrinking gas tax but raise equity questions
Summary
Economists told the Joint Committee on Revenue that replacing a shrinking gas‑tax base with a vehicle‑miles‑traveled tax could stabilize transportation revenue, but urged pairing any swap with EV purchase incentives and smoothing mechanisms to avoid regressive outcomes or administrative burdens.
A trio of economists and transportation policy experts briefed the Joint Committee on Revenue on a proposal to consider a vehicle‑miles‑traveled (VMT) tax to stabilize transportation funding as fuel‑tax revenue falls.
State Sen. Mike Barrett introduced academic witnesses who described two rationales for a VMT tax: align payments with the public benefits and costs of road use (user‑pays) and account for driving‑related externalities such as congestion and accidents. Professor Max Auffhammer and Professor…
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