Transportation Secretary Pete Buttigieg said Friday that the Biden administration is considering implementing a vehicle mileage tax on Americans as a way to finance a multi-trillion-dollar infrastructure plan expected to be unveiled by President Joe Biden.
Biden to consider mileage tax to fund infrastructure plan
Buttigieg said on CNBC during an interview, "I believe that shows a lot of promise... If we believe in the so-called user-pays principle, which states that a portion of how we pay for roads is dependent on how much we drive." The tax will bill drivers based on how many miles they drive rather than how much fuel they use, which is no longer a reliable source of revenue with so many electric vehicles on the road.
The secretary warned that "you hear a lot of 'maybe' as all of these must be balanced and could be part of the mix." He noted that the mileage tax is a consideration at the moment. Buttigieg also added that the White House is proposing reintroducing Build America Bonds, a particular form of municipal bond initially adopted by the Obama administration that lets the U.S. Treasury pay the interest costs.
The bonds "offer a lot of promise on how we exploit that kind of funding," as per the secretary. His remarks come a day after Biden's first press conference as president, at which he revealed intentions to unveil a $3-4 trillion infrastructure plan next week in Pittsburgh.
The president claimed that restoring the United States' physical and technical infrastructure was a top priority to not only improve a struggling economy. But also to be competitive with foreign rivals such as China. Buttigieg estimated that a proposal to restore the country's roads, bridges, and waterways would yield a considerable investment return. Buttigieg also asked the House Transportation and Infrastructure Committee the day before to make a "generational investment" in infrastructure while still tackling climate change and racial inequity, N.Y. Post reported.
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Biden urged to build massive plan to rival China
In a phone call with British Prime Minister Boris Johnson on Friday, Joe Biden proposed creating an effective infrastructure plan to rival China's Belt and Road initiative. In his second phone call with former British Prime Minister Theresa May after taking office, former U.S. President Donald Trump expressed worry that Beijing's project would significantly increase Beijing's economic and political influence.
China's Belt and Road Initiative (BRI) is a multi-trillion-dollar infrastructure initiative initiated by Chinese President Xi Jinping in 2013 that involves development and investment projects stretching from East Asia to Europe. According to sources, Biden said in his first full press conference on Thursday that the world is experiencing a "fourth industrial revolution" and that Beijing is attempting to claim global domination.
Next week, Biden expects to unveil a multi-trillion-dollar development package for the United States. On Thursday, he said that increased U.S. investment in promising emerging developments like quantum computing, artificial intelligence, and biotechnology would result.
The U.S. President's remark was not included in the U.K. Government's readout of the call. Still, when asked about it later, he said: "We spoke a lot about the need for Britain and the U.S. to stand together and deal with the whole notion of whether or not NATO stands together and whether or not I'd be able to come, and I hope I can, to NATO meeting."
Donald Trump's predecessor tried to derail China's Belt and Road Initiative during his presidency. However, over a dozen Latin American countries and ten Caribbean nations have participated in recent years. Meanwhile, almost every Nato member state in Eastern and Southern Europe is involved in the project, as per The Telegraph via MSN.
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