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From gas tax to road pricing

From gas tax to road pricing

Robert W. Poole of the Reason Foundation thinks that trust is going to be essential if US states are to transition from gas tax to road pricing.
Charging, Tolling & Road Pricing / March 18, 2020
By Adam Hill

Robert W. Poole, director of transportation policy at the libertarian thinktank Reason Foundation, has written a briefing which looks at how US states could make an ‘orderly transition’ from taxes on fuel to some form of road pricing.

Revenue from traditional taxes on fuel are certainly falling: the fact that engines are more efficient, and therefore less gas is required, is one major reason, even as the search for alternative drivetrains, such as those used in electric vehicles (EVs), moves drivers further away from fossil fuels.

“There is a growing consensus among US transportation researchers, and increasingly among state departments of transportation, that our main highway funding source-per-gallon taxes on gasoline and diesel fuel-will not be sustainable on a long-term basis,” says Poole. By 2045, the US could be looking at a shortfall from “business-as-usual fuel tax revenues” of more than $50 billion per year. Added to that, US highway infrastructure is creaking and requires investment. “The impending fuel tax crisis comes at a difficult time,” he says, with masterly understatement... FULL ARTICLE

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