Ten Reasons Why Per-Mile Tolling Is a Better Highway User Fee than Fuel Taxes

Reason ^ | 2-13-2014 | Robert Poole

[TurboZamboni]

This policy brief focuses on the challenge of developing a viable, user-friendly, per-mile charging system to replace fuel taxes for the nation's major highways. In doing so, it outlines 10 reasons why per-mile tolling is a better highway user fee than fuel taxes. Reason 1: Per-mile tolling is a direct, rather than indirect, user fee. Motorists would pay for the amount of service they received; they would pay providers directly for providing that service; and they would know exactly how much they were paying and what they were getting for it. Reason 2: Per-mile tolling is a sustainable long-term funding source for long-term infrastructure, which does not depend on the energy source used to propel the vehicles. Its transparency should help rebuild trust in the highway funding system. Reason 3: Per-mile tolls can be tailored to the cost of each road and bridge, rather than being averaged across all types of roads, from neighborhood streets to massive Interstates; this ensures adequate funding for major highway projects like Interstate reconstruction and modernization.

[TurboZamboni]

Reason 4: Per-mile tolling reflects greater fairness, since those who drive mostly on Interstates will pay higher rates than those who drive mostly on local streets.

Reason 5: If per-mile tolling is implemented as a true user fee, it will be self-limiting, dedicated solely to the purpose for which it was implemented (and enforceable via bond covenants with those who buy toll revenue bonds).

Reason 6: Per-mile tolling will guarantee proper ongoing maintenance of the tolled corridors, since bond-buyers and other investors legally require this as a condition of providing the funds.

Reason 7: Per-mile tolling also provides a ready source of funding for future improvements to the tolled corridor.

Reason 8: Toll financing means needed projects, such as reconstruction and widening, can be done when they are needed, and paid for over several decades as highway users enjoy the benefits of the improved facilities.

Reason 9: A per-mile tolling system using all-electronic tolling can easily implement variable pricing on urban expressways to reduce and manage traffic congestion.

Reason 10: Per-mile tolling would be the first big step toward replacing fuel taxes with mileage-based user fees—something that most of the transportation research and policy community has concluded should eventually happen. -

"discuss among yourselves"

[cripplecreek]

1 more reason why I’m not a libertarian.

[ansel12]

Perhaps we can complicate all facets of American life.

[SomeCallMeTim]

Here’s ONE reason that TRUMPS all of those...

The Government doesn’t need to know how many miles I drive each year.

[Controlling Legal Authority]

So then toll payers should be able to credit their tolls costs against sales or other taxes that they owe to support local streets.

[E. Pluribus Unum]

Until they decide that pile of money would be put to better use on Lefty “renewable energy” fantasies.

[The Ghost of FReepers Past]

I hate tolls, especially in states like OK where you are suppose to just throw money in certain spots. If you do not live in that state you do not easily realize what is going on and they send you a nasty-gram when you get home.

I would pick anything over tolls.

[Ingtar]

It controls the movement of the masses.

It gives even more revenue to an out of control government to borrow against.

The privileged classes can be exempted.

[rusty schucklefurd]

Bad idea - this is about control. The odometer on my 71 Superbug hasn’t worked in over ten years. Does that mean I can’t drive the car? Taxes NEVER stay at the rate first enacted. Taxes never stay with the original parameters either. Just my two cents.

[Lurkina.n.Learnin]

So we can stop every quarter mile and pay a toll. On top of that who is going to believe they will do away with the gas tax?

[philman_36]

Reason 9: A per-mile tolling system using all-electronic tolling can easily implement variable pricing on urban expressways to reduce and manage traffic congestion.

So ALL of your vehicular movement will have to be monitored because it won't stop at just "urban expressways".

Just a bit too much "Big Brother" for me.

[C. Edmund Wright]

1 more reason why I’m not a libertarian.

Neither is Neal Boortz and a whole lot of others who claim they are libertarians.....and this idea is certainly NOT libertarian.

[MeganC]

Per mile tolling would be an immediate disincentive for tourism by road. The hospitality industry in rural America would be hard hit given that for many small towns the one industry they have left is tourism.

The idea also flies in the face of the fact that the expansion of the US economy over the past fifty years has been driven (pun intended!) by unfettered access to the nation’s roads. And now those roads will have a per-mile tax IN ADDITION to Federal and State fuel taxes that we all know will never go away.

No thanks!

[a fool in paradise]

A further discussion of reason 10:

Those who power their cars on hybrid or purely electric sources are not paying “their fair share” of the road taxes.

I say sock them with higher annual licensing fees (no point in taxing electricity since you may be using it for your home, and not to power a vehicle).

[castlegreyskull]

They would add the per-mile tolling and keep the gas tax. Lets not kid ourselves.

[lacrew]

Reason 1: Per-mile tolling is a direct, rather than indirect, user fee...

- Completely ignores differences in cost to provide service...ie gas hogs are heavier and do more damage to the road.

Reason 2: Per-mile tolling is a sustainable long-term funding source for long-term infrastructure...

- Absolutely nothing to suggest that a differently funded highway fund would not be raided just as the current one

Reason 3: Per-mile tolls can be tailored to the cost of each road and bridge...

- Tolls used to do this...and to administer what this sentence suggests would require a gazillion federal workers.

Reason 4: Per-mile tolling reflects greater fairness, since those who drive mostly on Interstates will pay higher rates than those who drive mostly on local streets.

- Think about how sinister that statement is.

Reason 5: If per-mile tolling is implemented as a true user fee, it will be self-limiting, dedicated solely to the purpose for which it was implemented...

- Just like all road funding, right? Nothing would change.

Reason 6: Per-mile tolling will guarantee proper ongoing maintenance of the tolled corridors...

- That’s code for we’ll be paying quadruple the taxes we pay now.

Reason 7: Per-mile tolling also provides a ready source of funding for future improvements to the tolled corridor.

- Today’s gas taxes are already supposed to do that.

Reason 8: Toll financing means needed projects, such as reconstruction and widening, can be done when they are needed, and paid for over several decades as highway users enjoy the benefits of the improved facilities.

- We already do exactly that through General Obligation bonds and other instruments.

Reason 9: A per-mile tolling system using all-electronic tolling can easily implement variable pricing on urban expressways to reduce and manage traffic congestion.

- I DO NOT view this as a ‘positive’.

Reason 10: Per-mile tolling would be the first big step toward replacing fuel taxes...

- In a socialist dream world.

[Fungi]

Bingo! Just look at the IRS’ claim that the income tax would never be higher than three percent. Nonsense.

[mountainlion]

10 more reasons that I am more convinced to be a Libertarian. This would just add to the governments control and tracking of private individuals. If you like NSA you will really being tracked by the Highway department.

[cripplecreek]

We need to get the federal government out of most infrastructure funding. I’d rather see the states go back to funding their own roads and return to keeping interstate funding to strictly funding interstate highways and bridges.

[hlmencken3]

In other words, government control of road-space rationing, with the politically connected making out like bandits! Speed rationing is next, with the politically connected allowed to drive faster than commoners.