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Thursday, April 24, 2014

'Gasoline Tax, Unchanged Since 1993, is Due for an Increase'

Barry Ritholtz:

U.S. on Highway to Flunking Out, by Barry Ritholtz: Roads are crumbling, bridges are collapsing, and what was once considered one of the greatest achievements of any government anywhere has fallen into embarrassing disrepair. I am of course discussing our nation’s infrastructure. ... How did this happen? Credit a combination of benign neglect and anti-tax ideology run amok. ...
Since 1993, the U.S. federal gasoline tax has been 18.4 cents a gallon, which finances the Highway Trust Fund. Adjusted for inflation, the tax is now about 10 cents a gallon. ...
The U.S. interstate highway system, once the envy of the world, is in mediocre and deteriorating condition today ... putting the U.S at a competitive disadvantage. ...
The solution is simple. Raise the federal gasoline tax five cents a year for the next five years. Index it to inflation starting in the fifth year. It's the least the U.S. can do to keep up.

    Posted by on Thursday, April 24, 2014 at 12:24 AM in Economics, Fiscal Policy | Permalink  Comments (21)

          


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