Saturday, May 05, 2007

Do the patriotic thing: drive an SUV

From the WSJ: "Fuel-Efficient Cars Dent States' Road Budgets"

Cars and trucks are getting more fuel-efficient, and that's good news for drivers. But it's a headache for state highway officials, who depend on gasoline taxes to build and maintain roads.

The Federal Highway Administration estimates that by 2009 the tax receipts that make up most of the federal highway trust fund will be $21 billion shy of what's needed just to maintain existing roads, much less build new roads or add capacity. Trying to compensate for highway-budget shortfalls, a handful of states are exploring other, potentially more lucrative ways to raise highway money.
George Will has written about how the federal and state governments are so dependent on cigarette tax revenues that the fabric of government would unravel if people suddenly stopped smoking. This is the legacy of a continuous mad-grab for taxes and the unexpected consequences when people change their behavior (unfortunately?) for the better.

3 comments:

Anonymous said...

That must be why you can't buy a new VW TDI Diesel in Massachusetts.

It's NOT about the Environment, only the TAX RECEIPTS!

Anonymous said...

Yeah, why should citizens have to pay for road upkeep? Just contract the job out to the private sector. If it worked for the Big Dig, it'll work just as well for the MassPike!

Anonymous said...

Any Macro Economics professor to the right of Marx will rap a student's knuckles for viewing revenue from a particular tax as a constant.

Lucy seems a little sensitive. Don't worry, your leaders in Boston will find a way to raise more revenue without a thought to cutting spending.