Higher gas tax, user fees needed to repair highways, report says

The Highway Trust Fund is set to go broke in 2021. Proposals to raise the federal gas tax – which never get much traction because some members of Congress will not consider any tax increase at all – are not enough to solve the problem. A new report from the American Action Forum, a center-right nonprofit research group, offers a more stable funding plan.

 

Starting by addressing near-term needs, the report recommends a gas tax increase with indexing. For long-term funding, the group suggests a vehicle-miles-traveled tax, like the one in Oregon. Third, the report recommends congestion pricing along highly congested highways and roads, which would raise money while cutting down on the wasted time and fuel caused by congestion.

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