HIGHWAY MONEY AND HOW TO GET IT

THE BASIC MACHINE FOR HIGHWAY MONEY IS THE FEDERAL AID HIGHWAY TRUST FUND. IT DRAWS ITS REVENUE FROM HIGHWAY USERS, PRINCIPALLY FROM THE 4 CENT FEDERAL TAX ON GASOLINE. HIGHWAY TRUST FUND RECEIPTS ARE USED EXCLUSIVELY FOR HIGHWAY IMPROVEMENTS. STATE GASOLINE TAXES ARE ALSO GENERALLY DEDICATED TO HIGHWAY USE. THE PRINCIPAL DRAWBACK OF THE TRUST FUND IS THAT IT IS EXTREMELY VULNERABLE TO INFLATION. THE FEDERAL GASOLINE TAX HAS NOT BEEN INCREASED SINCE OCTOBER 1, 1959. SINCE THEN, THE HIGHWAY TRUST FUND REVENUES HAVE INCREASED ONLY IN PROPORTION TO HIGHWAY TRAVEL. THIS IS NOT ENOUGH TO OFFSET THE EFFECTS OF INFLATION. AS THE FINANCIAL PINCH IS FELT AT THE STATE LEVEL, STATE LEGISLATURES ARE ASKED TO INCREASE MOTOR FUEL TAXES. THE HIGH COST OF BAD ROADS IS DISCUSSED IN TERMS OF ACCIDENTS, OPERATING EFFICIENCY, AND THE EFFECT ON THE ECONOMIC VIABILITY OF THE COMMUNITIES INVOLVED.

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Filing Info

  • Accession Number: 00201725
  • Record Type: Publication
  • Report/Paper Numbers: 11 pp
  • Files: TRIS
  • Created Date: Feb 9 1970 12:00AM