Is an Increase in the Gas Tax the Answer to Road Project Funding Woes?
Is an increase in the federal fuel tax the sensible, economical answer to funding highway infrastructure projects? The American Trucking Associations thinks so. The organization recently put forward this suggestion to a House Subcommittee of the Ways and Means, adding that tolls, mileage taxes, and public-private partnerships are no good because they won’t provide sufficient and equitable long-term funding. With the Federal Highway Trust Fund expected to run out of money by the end of the summer, lawmakers are scrambling to find new ways to pay for much-needed repairs and road work across the country without putting the squeeze on already recession-weary taxpayers. Debate has largely centered on raising the gas tax. Other ideas being floated to pay for road work include: • Issuing up to $60 billion in 10-year treasury bonds • Levying a $1 fee per barrel of crude oil • Instituting a transaction tax
