Posted on 05/23/2007 5:16:00 PM PDT by george76
WASHINGTON – A cash crunch is fast approaching for the government trust fund that pays to build and repair highways and bridges.
The federal tax on a gallon of gas has not risen in 14 years and Congress is reluctant to increase it. People are demanding more fuel-efficient vehicles – less gasoline used, fewer dollars for the fund.
States already are looking for other places for road-building money – toll road and consumption-based sales taxes, for example. They worry that the fund's looming shortage could hurt their efforts to address traffic congestion as well as environmental and safety problems caused by inadequate roads. The situation can only get worse in 2009, when revenues for the Federal Highway Trust Fund begin falling short of planned federal spending.
The fund provides the overwhelming bulk of federal dollars spent on highways. It gets its money mainly from the 18.4 cents-a-gallon excise tax that drivers pay at the pump.
Self-service regular now tops $3 a gallon. There is concern the price will reach a price at which people will get serious about cutting back on driving – sending less money into the fund. Fuel tax receipts did dip last summer when there was a spike in pump prices.
About 45 percent of all highway spending comes from the trust fund. With less money available from the fund, states must turn elsewhere for money to expand their highways and fill their potholes. That prospect is making lots of people unhappy.
The American Association of State Highway and Transportation Officials says at least six states have adopted variable fuel taxes that are pegged to inflation.
Close to two-thirds of the trust fund's $40 billion in receipts last year came from the gasoline tax.
(Excerpt) Read more at signonsandiego.com ...
LOL - Limbaugh is prescient. He has predicted these articles would arrive soon.
Gasoline Taxes by State 2002
http://www.energy.ca.gov/gasoline/statistics/gas_taxes_by_state_2002.html
In Florida, with federal aid declining, more than 90 percent of new roads since the early 1990s have been toll roads, state Transportation Department spokesman Dick Kane said...
With the population of Texas increasing by 1,000 people a day, “we as a state don’t really feel like we have an option to shelve projects or sit on our hands as the problems with the highway trust fund loom larger and come closer on the horizon,” said Christopher Lippincott, a Texas Transportation Department spokesman.
This article is totally and completely 100% ass backwards. They need to be looking at reducing or eliminating gas taxes.
I’ve heard that some states are considering going from a per gallon gas tax to a mileage tax. Presumeably you would have to take your car to the DMV each year to have the odometer read to see how many miles you have driven, and then pay a tax on your mileage.
Cars today get better mileage than cars did 20 or 30 years ago. That’s part of the tax problem also I’m sure.
Boo Freakin Hoo!!!!!
Next thing they'll be tellin the one bout how consumption increases mean they actually have less money!
Keep the hands of these assholes out of my pocket.
Ehhh, I just want my flying car that they said I’d have by now in the 50’s.
No it’s more Orwellian than that, they are doing a pilot program with GPS receivers that track your every move then transmit that information to the State. Soon after that you’ll start receiving tickets in the mail because they will be able to tell every time you exceeded the speed limit - every time. Welcome big brother.
Notice that state taxes on gas are typically twice what the federal taxes are. But there’s a limit to what State A’s taxes can be if neighboring states are much lower — people near the borders will just gas up across the border
how about the fact that “road building” is tied to union wages. until this is changed no new roads.
People who live near borders often have a strategy worked out.
They do their shopping for food, gas, etc. in the low sales taxes states...then live in low property tax states.
We all will be paying for Teddy’s big dig for decades yet.
more leaks, falling ceilings, etc...
We don’t more federal taxes. Let each of the states show us what they’re worth.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.