Courtesy of Mish.
Yet another “Trust Fund” is broke. This time, discussion involves an alleged “Transportation Trust Fund”.
As with Social Security, there is no “Transportation Trust Fund”, only a stack of unmarketable IOUs from one branch of government to another.
If there is any trust in the system, there shouldn’t be, and soon won’t be. Obama will surely see to that.
Grid Chicago reports Charging by the mile, a gas tax alternative, sees serious movement.
Because of vehicles with higher fuel efficiency, slightly less driving, and the gas tax not being changed since 1993, the motor vehicle fuel tax, or “gas tax”, has failed to pay for everything that Congress has legislated that it should pay for. The Highway Trust Fund, which includes the Mass Transit Account, has received several infusions of money from the “general revenue fund” – to the tune of over $60 billion.
But a new report from the Government Accountability Office, the congressional think tank focused on financing, past, present, and future, has made the country take a giant step forward in considering a switch to a fee that more accurately charges usage. The report, like all GAO studies, was commissioned by the House Transportation Appropriations Subcommittee.
The gas tax charges drivers based on their use of petroleum, different vehicles can go different distances on the same amount of petroleum: essentially, some pay less than others for the same use of the road. Additionally, the counts of how much people drive has decreased (called vehicle miles traveled, or VMT), yet our demand for funds to maintain and build new infrastructure outpaces the incoming revenues from the gas tax. Lastly, the federal gas tax hasn’t changed at all, sticking to a cool 18.4 cents per gallon (for non-diesel drivers) since 1993. ”While the gas tax was equal to 17 percent of the cost of a gallon of gas when it was set at its current level in 1993, it is now only 5 percent” (Streetsblog).
The Simpson-Bowles Commission, convened by President Obama to find strategies to improve the country’s fiscal situation in 2010, “called for an immediate 15 cent-per-gallon increase in the gas tax”.
An alternative to the gas tax is to charge people based on how much they drive, a mileage fee. This can be calculated in more than one way, and doesn’t require the use of a GPS system to track where people are going: pay-at-the-pump (or electric vehicle charging station), and prepaid, self-reporting system based on odometer readings.
Mindless Possibilities
Got that? Bureaucrats are actually pondering a system that would require road use prepayment based on self-reporting of miles driven.
It’s always important to keep in mind that the bureaucrats have an infinite capacity to do mindless things. How many bureaucrats will it take to manage a self-reporting system? At what cost? Who will comply?
When that proposal does not work, (and obviously it won’t), bureaucrats are likely to do something such as mandate devices in cars that will communicate with devices at gas pumps, tracking your every move. …
