We all know that U.S. infrastructure is in need of serious repair, but the Highway Trust Fund is substantially underfunded with the current gas tax.
To meet current spending levels the tax would need to be 31.6 cents per gallon, and to maintain existing conditions and performance, the tax would need to be 46.6 cents per gallon. The upward amount the tax could be without affecting supply or demand is $1.00.
“Most of us do not even notice the gasoline tax as the federal and state (if any) taxes are already built into the advertised per gallon pricing. So a rise in gas prices because of a rise in the tax would be not salient to consumers. But, we all would notice the better roads, bridges, and airports should the tax rise.”
Read the article at Forbes.
