Traditionally, taxes on fuel, gas and diesel have been the most common sources of revenue for highway programs at both the federal and state levels. Gas taxes alone cannot address the funding needs because:
Fuel taxes do not increase with inflation
Decreasing vehicle miles traveled = less gas tax revenue
Rising oil & gas prices = less gas tax revenue
New energy policies = reduced mileage = less gas tax revenue
(ie: CAFE Standards, hybrid vehicles)
States throughout the nation are grappling with new ways to raise revenue for infrastructure projects. Methods under consideration by state agencies include:
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