Federal
and state
fuel taxes
are a major source of funding for transportation
infrastructure. Declining revenue from these taxes, brought on by increased
fuel efficiency and reduced travel due to the weak economy,
is prompting lawmakers to take a look at how transportation is funded.
California
and Wyoming
have already increased gas taxes. Maryland, Minnesota,
New
Hampshire and Virginia
may soon follow.
Of course, people are looking beyond fuel taxes. Some have suggested
treating transportation more like a utility.
In a sense, a gas tax is something like a utility fee in that gas use is
somewhat proportional to miles use. The problems with a fuel tax have been
noted, which means the tax rate must increase if it is to continue as a primary
funding source. A tire tax might also support a utility-like fee because tire
wear is also somewhat proportional to miles driven. Some have even propose a
per-mile tax, though this would be more difficult to administer because miles
driven would have to be reported by vehicle owners or recorded and submitted by
a device, which prompts privacy concerns.
We probably have the means to solve our transportation funding
problems. Not all of them are easy, but then what is?
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