Summary List Placement
A century ago, Oregon adopted the first state gas tax, later dedicating the proceeds to building out the state’s road network. Within a decade, every other state in the country followed.
Since then, many Americans have been under the impression that the money they pay in gas taxes, registration, and other vehicle-related fees is enough to cover the costs of building and maintaining the millions of miles of roads they use.
Today, however, revenue from highway users covers only a little more than half the cost of building and maintaining the nation’s roads. Most of the rest of the money comes from general tax revenue that you and I pay regardless of how much we drive or whether we even own a car.
America’s transportation funding challenges are expected to get worse. The rise of hybrid and fully electric vehicles mean that, as Transportation Secretary Pete Buttigieg recently said, the gas tax “can’t be the answer forever because we’re going to be using less and less gas.”
On March 26, Buttigieg floated a possible solution to the funding crisis: a tax on vehicle-miles traveled, or “VMT.” Under a VMT tax system, Americans would pay a per-mile fee …read more
Source:: Businessinsider – Politics