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Author Topic: Gasoline Taxes and Tolls Pay for only a Third of Road Spending Back to Topics
wmderrick

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Twin Cities

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Message Posted: Jan 18, 2013 11:03:00 AM

A key issue for many state legislatures this year is transportation funding, says Joseph Henchman of the Tax Foundation.

The lion's share of transportation funding should come from user taxes and fees, such as tolls, gasoline taxes and other user-related charges. When road funding comes from a mix of tolls and gas taxes, the people that use the roads benefit from them and should bear a sizeable portion of the cost. By contrast, funding transportation out of general revenue makes roads "free," and consequently, overused or congested -- often the precise problem transportation spending programs are meant to solve.

•Nationwide in 2010, state and local governments raised $37 billion in motor fuel taxes and $12 billion in tolls and non-fuel taxes, but spent $155 billion on highways.
•In
Visit National Center for Policy Analysis for full article
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NedW
Champion Author Indianapolis

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Message Posted: Jan 19, 2013 11:48:31 PM

Thank you for submitting this article, wmderrick.
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jeskibuff
Champion Author Tampa

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Message Posted: Jan 19, 2013 7:28:08 PM

SUNOIL said: "Maybe we need to take a look at why road repair costs are so high and try to make some changes."

It's astounding to drive past projects that seem to take years to complete. I haven't driven it in years, but I-75 from Florida to central Georgia had miles and miles of road barrels blocking off lanes for the LONGEST time. First, why limit travel lanes for miles when road crews are working on only a small stretch at one time? Then when they do work on it, it takes months and months to complete. In contrast, this last year sections of I-4 were paved quickly and nicely from Tampa to Lakeland. That was a nice switch!
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bston
Champion Author Oklahoma City

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Message Posted: Jan 19, 2013 5:23:00 PM

No wonder most roads are in such sad shape.
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danny999
Champion Author Florida

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Message Posted: Jan 19, 2013 5:56:56 AM

Sounds like bad money management.How many states use road money for other emergencies????
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alterman156
Champion Author New York

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Message Posted: Jan 19, 2013 1:05:58 AM

I wonder where the rest comes from?
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leeac
Champion Author Ohio

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Message Posted: Jan 19, 2013 12:56:11 AM

Bigger and heavier cars and trucks should pay more for roads.
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esq262
Champion Author Asheville

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Message Posted: Jan 18, 2013 10:43:55 PM

Here in NC the government needs to stop robbing our roads fund for general spending.
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SammyAdams
Champion Author Tallahassee

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Message Posted: Jan 18, 2013 10:08:04 PM

From the article: "Expanding tolls and indexing gasoline taxes for inflation may not be politically popular, even though transportation facilities and services are highly popular. Given that transportation spending exists, states should aim to fund as much of it as possible from user-related taxes and fees. Subsidizing highway spending from general revenues creates pressure to increase income or sales taxes, which can be unfair to non-users and undermine economic growth for the state as a whole."

==============================================================

Yeah, indexing gasoline taxes for inflation would be the solution. The FED robs US by running the printing presses (Dollar devaluation via counterfeiting), so the state needs to be a part of that action by making sure that THEY are not short changed. It's one thing to allow the citizens of each state to become victims of Federal theft, but don't let the FED steal from the state coffers!
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Wanda127
Champion Author Florida

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Message Posted: Jan 18, 2013 7:33:44 PM

If they would use all the taxes that are collected only for the roads instead of other projects they would not need as much from other sources.
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wz
Champion Author Twin Cities

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Message Posted: Jan 18, 2013 6:16:13 PM

Tolls and fuel taxes should not be subsidizing public transportation. Those systems get the bulk of their funding from transportation departments. A better model should have them priced to break even.
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race2IT
Champion Author Fort Worth

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Message Posted: Jan 18, 2013 6:14:32 PM

What does the other two-third pay of the gasoline taxes and tolls pay for?
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skempton
Champion Author Vermont

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Message Posted: Jan 18, 2013 5:36:42 PM

In VT, they suck revenue out of the transportation taxes to fund social programs.
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PDQBlues
Champion Author San Diego

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Message Posted: Jan 18, 2013 5:25:12 PM


We live at a time when too many people wants to get rid of all taxes to get everything free. At some point, if we want our roads and highways and other infrastructure, they must realize the money must come from somewhere.
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lippoe_sokan
Champion Author Provo

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Message Posted: Jan 18, 2013 4:56:02 PM

IF we could be sure the numbers are accurate, and IF we could be sure we're using the current money wisely, it is reasonable to assume that we should raise fees -- taxes, fees, tolls, etc. -- associated with travel. Otherwise, it's just one more money-losing government subsidy. BUT, I'm not sure we can always trust the numbers AND I'd like to be convinced that we use the money we have wisely.
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Pramodsharma
Champion Author Richmond

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Message Posted: Jan 18, 2013 4:16:51 PM

Cut spending, and prepare good roads by using cement not tar.
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07skydriver
Champion Author Ohio

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Message Posted: Jan 18, 2013 3:53:30 PM

Just stay home.
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Night Owl
Champion Author Toronto

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Message Posted: Jan 18, 2013 3:50:12 PM

bwatchingu is exactly right. The government is always looking for more money to waste.
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tnfran
Champion Author Arizona

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Message Posted: Jan 18, 2013 2:38:00 PM

To YumaFellow, you have no idea how Much in taxes the trucking industry pays, much more than you think, and way more than 4 wheelers % do.
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ObieDog
Champion Author Maryland

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Message Posted: Jan 18, 2013 2:28:24 PM

Sadly, it is probably time for an increase.
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humblepie
Champion Author Toledo

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Message Posted: Jan 18, 2013 2:11:27 PM

the "general fund" created this mess
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kag2010
Champion Author Winnipeg

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Message Posted: Jan 18, 2013 2:04:41 PM

So what?
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kag2010
Champion Author Winnipeg

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Message Posted: Jan 18, 2013 2:03:46 PM

excellent points,
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mastermariner
Champion Author Texas

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Message Posted: Jan 18, 2013 1:42:43 PM

Increase the tax on gas.
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bar1035
Champion Author Charlotte

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Message Posted: Jan 18, 2013 1:17:06 PM

They pave our road every few years whether it needs it or not
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YumaFellow
Champion Author Arizona

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Message Posted: Jan 18, 2013 1:08:35 PM

The right-wing, small government group always makes the same pitch--the people who use roads should pay for them. They will not raise taxes, they will just toll people to death. And at the same time, not charge the trucking industry for the monumental wear and tear it causes on our highways and interstates. And this sort of pitch does not account for the extent to which business development and growth depends on good highways and transportation systems.
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Wally3023
Champion Author Pennsylvania

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Message Posted: Jan 18, 2013 1:05:15 PM

Pony up
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bwatchingu
Champion Author Arkansas

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Message Posted: Jan 18, 2013 1:03:07 PM

Government always wants more money to waste.
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MrDeath666
Champion Author Houston

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Message Posted: Jan 18, 2013 12:52:44 PM

So what? We all pay taxes & we all use roads.
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SUNOIL
Champion Author Toledo

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Message Posted: Jan 18, 2013 12:39:59 PM

Maybe we need to take a look at why road repair costs are so high and try to make some changes.
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fullcirclethink
Champion Author Washington

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Message Posted: Jan 18, 2013 12:16:12 PM

This is what happens when government gets involved. First, they mandate higher fuel efficiency and then wonder why their fuel tax revenue goes down! Always getting the cart before the horse. The really scary part here? The same government that legislated CAFE standards is now in charge of fixing the problem! Fox in charge of the hen house once again?
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Taxrefugee
Champion Author Arizona

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Message Posted: Jan 18, 2013 11:44:24 AM

Gas tax proceeds have dropped so low here that our City enacted a special sales tax 12 years ago dedicated to roads and streets. Moth the initial tax and a 15-year extension in 2009 were passed overwhelmingly by the voters.
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JagXKR
Champion Author British Columbia

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Message Posted: Jan 18, 2013 11:38:32 AM

Everyone benefits from roads. How do you think all the goods you purchase get to the stores?
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bsnort
Champion Author Huntsville

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Message Posted: Jan 18, 2013 11:35:27 AM

@ OTISFL & mitt4prez - excellent points, would like to see the answers! always frustrating to drive through a construction area and see four supervisors standing around supervising one guy with a shovel.
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gcalleja
Champion Author Miami

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Message Posted: Jan 18, 2013 11:34:56 AM

To be fair, sales taxes from commerce facilitated by roads should be calculated.
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Joeski1
Champion Author New Jersey

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Message Posted: Jan 18, 2013 11:33:35 AM

Tax tires $20
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OTISFL
Champion Author Pensacola

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Message Posted: Jan 18, 2013 11:33:09 AM

Break it down so we know WHERE the $$$$'s are spent.
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wrunner
Champion Author Virginia

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Message Posted: Jan 18, 2013 11:30:09 AM

That is a very big difference in revenue and spending.

I wonder how much of it is paid for road maintainers and how much is actually paid to build or fix roads.

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greatartiste
All-Star Author New Jersey

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Message Posted: Jan 18, 2013 11:17:53 AM

time to figure out a new and equitable way to pay for this....
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mitt4prez
Champion Author Tacoma

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Message Posted: Jan 18, 2013 11:12:24 AM

Take out overhead, and what percentage of road spending is paid for by taxes/tolls?
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