Federal Legislators Propose $20 Fee for Driving Passenger Vehicles, $200 for Electric Vehicles | Carscoops

      Some Republicans are already criticizing the proposed vehicle fee as a gimmick, even though it originates from their own party.

      The government is considering a new vehicle tax proposal aimed at addressing America's deteriorating infrastructure.

      This proposal suggests charging Americans between $20 and $200 annually for vehicle ownership.

      Several Republicans are publicly opposing the idea, raising issues regarding its fairness.

      The state of America's roads is no longer just a joke; it represents a $20 billion yearly deficit for the federal government, prompting lawmakers to explore new solutions to bridge the gap. One suggestion is a national vehicle fee that could potentially help reduce gas prices in the long run. However, like many contemporary tax proposals, it is facing resistance from within the same political party that introduced it.

      The proposal, put forth by House Transportation Committee Chair Sam Graves, suggests an annual fee for owning and driving a car, varying by vehicle type—from $20 for standard passenger vehicles to $200 for electric vehicles. Hybrids would be priced at $100. According to Graves, the ultimate aim is to replace the federal gas tax entirely.

      “Nearly 40 states already impose a special registration fee for EVs. It’s time for the federal government to implement a fee on EVs that have, for years, been exempt from gasoline or diesel taxes, the main source of funding for the Highway Trust Fund,” Graves stated. He emphasized that gas and diesel taxes have not been updated since 1993, resulting in an estimated $480 billion loss in federal revenue due to a lack of inflation adjustment.

      Interestingly, under this proposal, EV owners would effectively be paying the equivalent of about 1,111 gallons of fuel annually, based on the federal gas tax of $0.18. As per the Department of Energy, the average vehicle consumes around 430 gallons of gas each year, indicating that EV drivers would end up shouldering a disproportionately heavy burden.

      Not Everyone Agrees

      However, the proposal seems likely to falter before progressing further. Chip Roy expressed his strong disapproval, questioning, “Are you out of your fricking mind? The party that advocates for limited government is considering a car tax? I was told, ‘Don’t worry about it. We’ll eliminate it later in the highway bill,’” Roy remarked.

      According to Politico, he was informed that the car tax is merely “a gimmick to pay for this, so we know that we’re not actually going to cover the costs. That’s the way things operate in this town.”

      After examining the details, AmericanProgress.org predicts that the proposal could impose a $7 billion annual cost on Americans and, consequently, reduce the debt by the same amount. However, they also note that the broader legislation involving this proposal includes significant tax cuts for the wealthiest individuals. Over a decade, the top 0.1% of earners would receive an average tax cut of $278,000.

      Whether this proposal genuinely seeks to modernize road funding or is simply a political illusion, it raises a critical question: who should bear the financial burden for the nation's decaying infrastructure amid swift technological changes and inequitable tax codes? If the outcome penalizes EV adoption while allowing the wealthy to evade responsibility, this pathway is unlikely to be smooth.