University of Maryland Academics Study Income-Based VMT Fees

The London School of Economics US Centre’s USAPP blog spotlights research by three University of Maryland academics on the impact of replacing gas taxes with income-based VMT fees. The researchers maintain, “VMT fees often raise equity issues; since lower-income drivers are more sensitive to increased driving costs, they are more likely to be priced off the road. Flat-rate VMT fees have been criticized for being regressive, placing a disproportionate financial burden on lower-income drivers. However, an income-based VMT fee may prove to be more effective.” The scholars also find that the fees would not affect motorists’ “travel behavior.”