April 25, 2018
ICYMI: Raising the Gas Tax is Not a Long-Term Fix for the Highway Trust Fund
The American Action Forum released a study examining long-term solutions for the Highway Trust Fund (HTF) in light of its expected insolvency in 2021. The research finds that raising the gas tax is not a viable long-term solution and lawmakers should instead consider a combination of user fees such as a mileage-based tax and congestion pricing to prevent the HTF’s insolvency. See excerpt below.
“As Congress begins to draft several infrastructure bills over the upcoming months, it will have to address the funding shortfalls of the HTF. Unfortunately, a one-size-fits-all solution will not work for the HTF. To prevent further transfers from the General Fund, the HTF needs to secure long-term funding. The best way to secure this funding is through a combination of new user fees implemented alongside the existing gas tax.”
Click here to read the full research.
Click here to see related story in The Hill.