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CBO: Tolls, mileage fees would better fund roads
The Hill ^ | February 16, 2016 | Keith Laing

Posted on 02/21/2016 10:56:22 PM PST by Tolerance Sucks Rocks

The federal government would get more bang for their buck if U.S. drivers were charged directly for their use of highways through tolls or mileage fees, a new study from the Congressional Budget Office (CBO) says.

The report from Congress's budgetary scorekeepers says current "spending on highways does not correspond very well with how the roads are used and valued."

The CBO said mechanisms like tolling, mileage fees or congestion pricing could be considered to fund transportation projects in lieu of relying mostly on gas tax revenue.

"Almost all federal spending for highways occurs through formula grants to state and local governments, and historically, less than half of the funding has been tied directly to the amount of travel on the roads," the report said.

"Although data from the past 20 years show that, on average, pavement quality is improving, fewer bridges have deficiencies, and highway fatalities occur less frequently, those averages mask differences between urban and rural areas and between interstate highways and other roads, differences that sometimes are not reflected in spending," the report continued.

"For example, even though highway travel is more concentrated on Interstates and in urban areas, and urban roads are typically in poorer condition than rural ones, the federal government and state governments typically have spent more per mile of travel for major repairs on rural roads," the CBO said.

The finding comes after lawmakers passed a five-year, $305 billion highway bill last fall.

Lawmakers relied on a package of approximately $70 billion of offsets from other areas of the federal budget to help pay for the recently completely highway bill, which lasts until 2021.

The traditional source of transportation funding has been the 18.4 cents-per-gallon federal gas tax. The tax has not been increased since 1993, however, and improved fuel efficiency has sapped its purchasing power.

The federal government typically spends about $50 billion per year on transportation projects, but the gas tax only brings in approximately $34 billion annually at its current rate.

Lawmakers turned to other areas of the federal budget to close the $16 billion per year gap last year, but the CBO said they would have been better off finding another funding mechanism that would charge drivers directly for their highway use.

"Charging drivers specifically for using roads would increase economic output by allowing highly valued transportation to move more quickly and more reliably," the study said. "Such pricing could take the form of per-mile charges (also known as vehicle-miles traveled, or VMT, charges), congestion charges, or tolls on Interstate highways.

"When faster travel and avoiding delays were a priority, drivers could opt to pay for the use of a less congested road, and when travel speed was less important, they could use a road with a lower fee or avoid paying a fee by using a road without one," the report continued. "Charges that varied by time of day or that differed by road would also affect economic activity by limiting congestion."

Tolling advocates cheered the CBO for concluding that it could be used more often to fund highways.

“The CBO’s objective, impartial analysis of tolling as one funding method provides valuable insights in today's world where every highway dollar counts,” International Bridge, Tunnel and Turnpike Association (IBTTA) Executive Director Patrick Jones said in a statement.

“And as the study makes clear, tolls have the potential to do much more than fund the maintenance, repair and expansion of our highway system,” Jones continued. “As CBO explains in its report, implementing tolls on highly traveled highways can boost productivity by incentivizing more efficient travel patterns for workers, and by reducing delivery and inventory costs associated with goods by moving them more quickly to their destinations, among other benefits. These kinds of gains extend far into the broader economy.”

The CBO has projected that it would have taken about $100 billion, in addition to the annual gas tax receipts, to pay for a six-year transportation bill, which is the traditional lengthy of highway funding measures.

The full report from the CBO can be read here.


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: bigbrother; economy; highwaybill; infrastructure; mileagetax; tolls; transportation; vmt
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1 posted on 02/21/2016 10:56:22 PM PST by Tolerance Sucks Rocks
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To: 3D-JOY; abner; Abundy; AGreatPer; Albion Wilde; AliVeritas; alisasny; ALlRightAllTheTime; ...

PING!


2 posted on 02/21/2016 10:57:26 PM PST by Tolerance Sucks Rocks (Terrorism, the thing that shall not be named by the MSM)
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To: Tolerance Sucks Rocks

Bullsh1t.

This is about tracking people.

Resist we much. /sharpton


3 posted on 02/21/2016 11:03:19 PM PST by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: Secret Agent Man

Resist we much another day /GOP-e.


4 posted on 02/21/2016 11:05:15 PM PST by Tolerance Sucks Rocks (Terrorism, the thing that shall not be named by the MSM)
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To: Tolerance Sucks Rocks

Gasoline tax would go a long way toward covering highways, if government didn’t steal those funds to use on their inner city pet projects.

Then they push tolls, additional gas taxes, whatever else they can come up with.

Just say no citizens!


5 posted on 02/21/2016 11:07:20 PM PST by DoughtyOne (Facing Trump nomination inevitability, folks are now openly trying to help Hillary destroy him.)
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To: Tolerance Sucks Rocks

No, Toll Authorities are horrible shepherds of the funds they collect. They are constantly building and rebuilding toll booths because they are flush with cash, become a haven for failed politicians, their contracting practices are suspect, and there is little accountability to the public. Have you ever heard of tolls being lowered? Compare what Orange County, Florida does for their stretch of Route 528 “the Beach Line” and their toll infrastructure versus Brevard County where they pulled down the toll booths and do just as good a job of maintaining the highway as does the toll authority. Forget the theory, look at reality.


6 posted on 02/21/2016 11:08:39 PM PST by NonValueAdded (Hey, Donald, keep an even keel, will ya?)
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To: Tolerance Sucks Rocks
The elite are looking for a justification to require car tracking to bill us “fairly.” A gas tax is the fairest way to collect revenue and it doesn't track you. A tiny liberal “Smart Car” that is light and uses little gas and consequently contributes less wear than a gas guzzling conservative’s F150. What could be more fair. Make up the $16b shortfall by cutting welfare to illegal immigrants and able bodied loafers.
7 posted on 02/21/2016 11:09:00 PM PST by LoneRangerMassachusetts (behind enemy lines)
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To: LoneRangerMassachusetts
About the only vehicle not covered properly is that darling of the left, the electric car. Dump the subsidies and do a mileage tax verified and charged at registration time so no GPS is needed.
8 posted on 02/21/2016 11:15:52 PM PST by KarlInOhio (An orange jumpsuit is the new black pantsuit.)
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To: LoneRangerMassachusetts

How about putting illegals to work building roads?


9 posted on 02/21/2016 11:18:29 PM PST by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: Tolerance Sucks Rocks
Highway improvement was originally meant to be a method to facilitate the movement of goods by the farmers and producers to the market, not a means for the urban dweller to visit the rural and turn it into the urban playground.
10 posted on 02/21/2016 11:24:35 PM PST by crazyhorse691 (Who knew that an elected official is a demi-god waiting to happen?)
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To: Tolerance Sucks Rocks

The commies at “The Hill” never met a tax they didn’t like.


11 posted on 02/21/2016 11:29:07 PM PST by Luke21
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To: Tolerance Sucks Rocks

A tax by any other name.


12 posted on 02/21/2016 11:39:38 PM PST by stocksthatgoup (Trump for me. I want to see Hillary, Bernie or any demoncrap crushed)
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To: American in Israel
How about putting illegals to work building roads?

You have hit it.

Get caught as an illegal and you are on a chain gang for 12 months before being deported.

13 posted on 02/21/2016 11:43:19 PM PST by CurlyDave
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To: Tolerance Sucks Rocks

gas tax revenue is already a ‘mileage’ fee. The more mileage you drive, the more you fill up and the more gas taxes you pay. But you just know, by renaming the revenue a ‘mileage fee’ means it will go up more than you’re paying now in gas taxes because they’ll need to hire staff to read all those odometers.


14 posted on 02/21/2016 11:56:32 PM PST by blueplum
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To: NonValueAdded
Have you ever heard of tolls being lowered?

Yes. They were lowered last year in my state (Maryland).

15 posted on 02/22/2016 12:03:36 AM PST by Tolerance Sucks Rocks (Terrorism, the thing that shall not be named by the MSM)
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To: Tolerance Sucks Rocks
CBO: Tolls, mileage fees would better fund roads

I thought the Magic Negro's "Stimulus 1" Was supposed to take care of all that.

When was that? 2009?

16 posted on 02/22/2016 12:17:05 AM PST by publius911 (IMPEACH HIM NOW evil, stupid, insane ignorant or just clueless, doesn't matter!)
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To: DoughtyOne

Yup.


17 posted on 02/22/2016 12:28:56 AM PST by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: KarlInOhio

It is not about taxes. It is about tracking everywhere you go.


18 posted on 02/22/2016 12:30:31 AM PST by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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The govt admitting it cannot properly administer revenue.


19 posted on 02/22/2016 12:50:19 AM PST by Gene Eric (Don't be a statist!)
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BS if politicians have access to the money it will never be spent correctly- or more bluntly it will be squandered.
However if they persist with this line- they need to remove all taxes on petroleum products


20 posted on 02/22/2016 12:56:45 AM PST by Nailbiter
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