Max Crumit

Transportation Funding and Hybrid Vehicles

When Eisenhower commenced the Interstate construction after WWII, the original plan was for the interstates to be tolled.  However, the workforce needed to man these toll booths proved impossible to justify.  So, they came up with a shadow toll concept.  They would tax gasoline at the pump and dedicate this tax to paying for the construction of the interstate.  This served its purpose well, and even today, gasoline taxes are the primary source of transportation funding.  However, with higher milage vehicles, as well as electric vehicles, the revenue generated by the gas tax is not keeping pace with transportation needs.  It is time to move to vehicles miles traveled tax system.  This would tax a vehicle by the number of miles it is driven in lieu of the amount of gasoline it consumes.  It could also be structured according to weight, and there could be a maximum tax per year for high milage needs.  The times are changing, and so are our vehicles.  It is time to alter our taxing mechanisms to keep pace with technology.

 

Max Crumit