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Americans set all-time records for SUV and pick-up purchases last year, despite sharp economic downturns and historic travel drop-offs caused by pandemic lockdowns. Those costs could conceivably rise even more, especially if deadly-yet-green vehicles like hybrid SUVs or the forthcoming EV Hummer become increasingly popular.Īdd in tumbling oil prices and the fact that our federal fuel excise hasn’t been increased in 28 years - according to many experts, it may never be increased again - and our default funding mechanism does little to disincentivize the purchase of even the dirtiest cars, much less driving those cars literally everywhere. In 2015, the National Highway Traffic Safety Administration estimated that car crashes cost taxpayers $836 billion annually - but that was based on 2010 fatality rates, which were about 10 percent lower than they are now.
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Many advocates argue that while taxing fuel might seem like a good way to charge drivers proportionately to their impact on the planet, it doesn’t fully account for the costs of the roughly 38,000 lives lost to traffic violence in America every year. roads, as opposed to the societal costs of excessive gasoline consumption alone. The concept of a VMT tax has long captured the imagination of safe streets advocates for a simple reason: it’s one of the few funding strategies that at least attempts to reflect the costs that excessive driving itself poses upon U.S. "We've got to think big it's got to be transformative." /4R2CD6KaZV Revenue generation will most likely come from several different sources. Journalists quickly seized on the comment as a sign that the tax might feature in Biden’s impending infrastructure bill, a hopeful assumption that was quickly doused by the White House and then Buttigieg himself.īut as the Biden administration hints that taxes on corporations and the wealthy will likely finance many of our roads and transit networks in the coming years, advocates are wondering whether public support for VMT taxes might be on the rise - and whether they might find a place in our transportation landscape, at least at the state level.Ī mileage-based tax shows a lot of promise, says about funding President Biden's infrastructure package. In a rapid-fire interview with CNBC last week, Buttigieg said that a vehicle miles traveled tax (or VMT tax, as it’s casually known) “shows promise” among a range of potential solutions to the challenges of funding our roadway network during the rise of electric vehicles, echoing the enthusiasm for the concept he displayed when he made pay-as-you-drive a central element of his presidential campaign platform. could switch from a gas tax to a mileage tax as part of the next infrastructure package - but he’s already sparked a conversation about the future of the innovative funding mechanism that’s unlikely to die down soon. Secretary Pete is walking back a statement that some thought suggested the U.S.