Friday, December 4, 2015

Highway bill

Gasoline consumption has held steady or slightly declined over the past 20 years but the federal tax has remained the same at 18 cents per gallon resulting in a shortfall. Total miles driven, has declined and gas mileage has improved. The costs associated with road construction and repair, have risen but gas tax revenues have held steady. The shortfall has been around 16 billion dollars per year but the bill that is about to be passed will allow 300 billion over the next 5 years which should be enough to cover the shortfall and have some left over for new construction. This will be a boon to local economies around the country since most of the construction goes to local contractors. The gas tax has been criticized in the past for spending on things like highway beautification and transportation museums but this has amounted to less than ten percent of the funds. States who had on average added another 30 cent per gallon tax, often misuse the money more so than the federal government. For example Texas spends 25% of its gas tax money on schools. This was a bi-partisan agreement and shows the congress can work.

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