Provocateur: Big Myth Busted: Gas Tax Doesn't Cover Road Costs
Excerpted from the
Regional Plan Association's May 2, 2003 "Spotlight on
Year after year, revenues
from state and federal taxes on gasoline sales pump approximately $45 billion
into constructing and maintaining the nation's road network. Advocates of
trains, light rail, bicycle paths, ferries, buses and other means of transport
look with envy and longing for some similar, stable source of funding.
The study's central chart shows how the nation spent $133 billion on roads and highways in 2001. This includes Federal, state and local roads, from big expressways to meandering local roads. On average, the gas tax paid for only 35% of this figure. This means that non-automobile-related taxes pay for about 40% of the total cost of the road network. In addition, Wachs shows that, although huge in absolute dollars, the pool of money raised by the gas tax has declined on a percentage basis over time. Indeed, "on average, fuel taxes in the 50 states would have to rise about 11 cents per gallon just to recoup their 1957 buying power."
One of the problems with
Wachs' analysis is that he sees the gas tax as a user fee. In reality, a gas
tax is not a user fee. Only a toll is a true user fee because it is point (or
pavement) specific. If you use a particular highway, you pay a particular
Highway planners do not have to prove that a highway would pay for itself through its tolls. Studies have shown that, if a highway had to pay for itself through tolls, almost none would be built. This fact opens the opportunity for a more productive debate on transportation as a whole.
We need a more general discussion of the purpose of transportation. In the United States, much discussion is sidetracked by treating transportation as a profit-driven private business. What if government investment in transportation, which seems to be always crucial, was "a service," more akin to education, than a private business that had to make a profit? If this concept were more generally accepted, transportation debates would revolve around providing the best mix of services for both convenience and economic development. There would be less talk of which type of transportation "pays for itself." In fact, none of them do.
Gas prices are probably the
most powerful determinant of the urban environment. A chart by Douglas
Kelbaugh, dean of the architectural school at the University of Michigan,
showed that there is a direct correspondence between the density of cities
worldwide and the price of gasoline in them-high gas prices equal greater