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VMT Taxation

VMT Taxation

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Published by rcaruso

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Published by: rcaruso on Dec 13, 2009
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12/12/2009

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VMT Taxation: A Modest Proposal
Alex PazuchanicsKatie RossRandy CarusoLauren Pessoa
 
Introduction
What is the current situation? The Highway Trust Fund is facing a serious shortfallDipping into the general fund is not a viable solution inthe long run
 
Background
The current funding mechanism tends to provide the wrongincentives.The overall goal of any proposal should be to priceusage of the system to encourage the most efficient use.Solutions that have been proposed:
Raising the Gas Tax (Politically difficult)Indexing the Gas Tax (May not keep pace withinflation,Revenue stream will be unpredictable)Passing On Responsibility to the States
o
Would only pass the buck, not solve the problemAll of these solutions require a great deal of political capital.They do not deal with the overarching issue of making the taxmore equitable for those who drive less frequently.
 

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