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Administration backs off per-mile tax idea

Gas prices are listed at $5.09 9/10 for regular and $5.29 9/10 for premium at a station in Washington, DC, on May 6, 2011. UPI/Roger L. Wollenberg
Gas prices are listed at $5.09 9/10 for regular and $5.29 9/10 for premium at a station in Washington, DC, on May 6, 2011. UPI/Roger L. Wollenberg | License Photo

WASHINGTON, May 6 (UPI) -- The Obama administration Friday backed off the concept of a tax based on miles driven after the idea was leaked, saying it was never "formally circulated."

The idea was among a number of proposed auto safety measures. Congress is considering a six-year reauthorization of the highway bill, a measure that typically includes auto safety and policy changes.

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The draft was leaked earlier this week, in which the proposed tax was outlined and a proposed Surface Transportation Revenue Alternatives Office that would conduct a "study framework that defines the functionality of a mileage-based user fee system and other systems," The Detroit News reported Friday.

The proposal was derided by many Republicans. However, at least three states are considering similar proposals because states stand to lose revenue for road maintenance as more electric vehicles are produced.

An administration official disowned the leaked document.

"This was an early working draft proposal that was never formally circulated within the administration," Transportation Department spokeswoman Olivia Alair said. "This is not a bill supported by the administration."

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