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1 Joseph Henchman, Transportation Plan Proposes Business Tax but Secretary Floats Possibility of Tolls 1 (2014)

handle is hein.taxfoundation/taxfaaj0001 and id is 1 raw text is: TxS                     Transportation Plan Proposes
FouNDATIoN Business Tax but Secretary Floats
Possibility of Tolls
May. 2014               By Joseph Henchman
No. 430
Key Findings
* Rising transportation expenses consistently outpace dedicated
transportation revenues, with the 18.6 cent per gallon tax on gasoline
stagnating as American driving plateaus and fuel economy improves.
* Currently, federal gas and diesel taxes raise about $30 billion per
year, and the federal government spend about $70 billion on surface
transportation. The Highway Trust Fund will run out of money in
August of this year.
* The GROW AMERICA Act would boost highway and road spending
by about 22 percent to $199 billion, boosts transit spending to $72
billion, and spends $19 billion on rail programs, for a total of $302
billion over four years. This will be enough to satisfy all the relevant
transportation interests but still leaves funding unaddressed
* The key proposed funding mechanism is an unspecified $150 billion
one-time business tax. Because it is only one-time revenue, it does
not address the fact that transportation spending is annual, large,
and growing.
* Additionally, the bill would remove the federal ban which prevents
state from tolling interstate highways.
* Relying more on tolls and less on general revenues means those who
benefit from good transportation pay directly for it, like any other
* The option to fund transportation with tolls would also reduce
pressure to boost sales taxes, income taxes, and business taxes
(including the Administration's problematic proposed changes to
international business taxation).

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