PRICE THEORY AND TAX EQUITY IN HIGHWAY FINANCE

TO PROVIDE PRACTICAL GUIDEPOSTS FOR APPLICATION OF THE MARGINAL COST STANDARD, HIGHWAY DESIGN, PRICE THEORY AND FINANCIAL ADMINISTRATION MAY BE INTERRELATED AND INTEGRATED INTO AN OPERATIONAL FRAMEWORK OR MODEL. THE CRUCIAL ELEMENT IN ESTABLISHMENT OF THE MODEL IS THE SEPARATION OF SPECIAL OR INCREMENTAL PAVEMENT COST FROM COMMON OR GEOMETRIC DESIGN COST. SPECULATION CONCERNING THE IMPACT OF THE FRAMEWORK SUGGESTS THE POSSIBILITY OF ESTABLISHING THE GASOLINE TAX RATE SO THAT GASOLINE TAX EARNINGS ON THE PRIMARY ROADS COVER PRIMARY ROAD COMMON COST. ADDITIONAL OR INCREMENTAL PAVEMENT COST MAY BE RECOVERED THROUGH THE USE OF LUMP SUM REGISTRATION TAXES OR WEIGHT DISTANCE TAXES. LIGHTLY TRAVELLED ROADS MAY BE FINANCED THROUGH THE USE OF GASOLINE TAX EARNINGS SUPPLEMENTED BY LUMP SUM LICENSE TAXES ON LIGHT VEHICLE CLASSES. THE GENERAL CONCLUSION IS THAT IT IS POSSIBLE TO MANAGE THE HIGHWAY FINANCIAL STRUCTURE IN THE INTEREST OF ECONOMIC EFFICIENCY WITHOUT CREATING SERIOUS INEQUITIES. /AUTHOR/

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  • Accession Number: 00200956
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Sep 9 1994 12:00AM