Biden Administration weighing a "vehicle mileage tax" to fund infrastructure projects

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Buttigieg, who spoke with CNBC’s Kayla Tausche on Friday, also contended that President Joe Biden’s forthcoming plans to rebuild the nation’s roads, bridges and waterways would lead to a net gain for the U.S. taxpayer and not a net outlay.

“When you think about infrastructure, it’s a classic example of the kind of investment that has a return on that investment,” he said. “That’s one of many reasons why we think this is so important. This is a jobs vision as much as it is an infrastructure vision, a climate vision and more.”

He also weighed in on several potential revenue-generating options to fund the project. He spoke fondly of a mileage levy, which would tax travelers based on the distance of the journey instead of on how much gasoline they consume.

“A so-called vehicle-miles-traveled tax or mileage tax, whatever you want to call it, could be a way to do it,” he said.

Democrats have slowly pivoted away from a gasoline tax in favor of a mileage tax amid a simultaneous, climate friendly effort to encourage consumers to drive electric cars.

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