Gas Tax Should Yield to Mile Fee as Cars Evolve: James M. Whitty
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Sept. 28 (Bloomberg) -- For 80 years the U.S. has relied onmotor-fuel taxes to pay for road repairs, transit systems andhighway construction. This system needs an overhaul becausesoaring fuel efficiency and a poor economy jeopardize thecurrent tax’s fundraising power.
The federal government reaped $31.7 billion from fuel taxesin 2009, the lowest total in five years. States collected $37.9billion in 2008, about the same amount as the year before. Morerecent data isn’t in yet, but further declines are inevitable.In July, carmakers and U.S. authorities agreed to raise fuel-efficiency standards 80 percent by 2025. As better mileagebecomes commonplace, motorists won’t need to buy as muchgasoline or diesel.