What are some alternative means of funding roads/highways?

Started by Ned Weasel, April 30, 2021, 06:02:23 AM

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Life in Paradise

Quote from: formulanone on February 10, 2022, 10:55:35 PM
Quote from: HighwayStar on February 10, 2022, 04:28:39 PM
Quote from: Life in Paradise on February 10, 2022, 03:49:53 PM
Suggestion for alternative road funding:  Tires
Remove/phase out the federal tax for gasoline/diesel and subsequently replace/phase in a tax on tires based upon (will need to be researched) the mileage expectancy of a particular tire as well as its load bearing basis (to take care of trucks' heavy road usage).  This would be a major hit initially (alas a phase in), but it would allow fuel to go down, include electric vehicles since they also run on tires, new car tire cost could be included at time of purchase, and would hopefully be able to appropriately compensate for road usage. Plus your teenager burning rubber would definitely feel the pain replacing his/her tires.  Now to get the states to jump on board...all would need to otherwise you would have "tire havens" where the cost of tires would be less.

This was discussed earlier in the thread I believe. The reason you don't want to do this is it creates a perverse incentive for people to drive on balding/bald/duct taped tires. Taxing a safety feature is generally not a good idea.

It's also not terribly fair if you pick up a nail or other road hazard. The risk is roughly equal to everyone, though hanging out by home improvement stores and home building sites seem to increase one's chances a bit...

Tires already come with a scrap / disposal fee in almost every state, though it's nominal ($1-4). Not sure if doubling it for the sake of infrastructure would really help nor hurt much; I doubt too many would put off tires over a $4-10 increase, but a slight increase in used tire sales might occur.
You make a good point that I did not consider with the proposal, but perhaps that could be another formula for credit based upon usage percentage.  I know it appears complicated, and just about everything in life appears to be these days to try to get something fair out of it (which again, rarely happens).


skluth

Quote from: Life in Paradise on February 12, 2022, 11:35:21 AM
Quote from: formulanone on February 10, 2022, 10:55:35 PM
Quote from: HighwayStar on February 10, 2022, 04:28:39 PM
Quote from: Life in Paradise on February 10, 2022, 03:49:53 PM
Suggestion for alternative road funding:  Tires
Remove/phase out the federal tax for gasoline/diesel and subsequently replace/phase in a tax on tires based upon (will need to be researched) the mileage expectancy of a particular tire as well as its load bearing basis (to take care of trucks' heavy road usage).  This would be a major hit initially (alas a phase in), but it would allow fuel to go down, include electric vehicles since they also run on tires, new car tire cost could be included at time of purchase, and would hopefully be able to appropriately compensate for road usage. Plus your teenager burning rubber would definitely feel the pain replacing his/her tires.  Now to get the states to jump on board...all would need to otherwise you would have "tire havens" where the cost of tires would be less.

This was discussed earlier in the thread I believe. The reason you don't want to do this is it creates a perverse incentive for people to drive on balding/bald/duct taped tires. Taxing a safety feature is generally not a good idea.

It's also not terribly fair if you pick up a nail or other road hazard. The risk is roughly equal to everyone, though hanging out by home improvement stores and home building sites seem to increase one's chances a bit...

Tires already come with a scrap / disposal fee in almost every state, though it's nominal ($1-4). Not sure if doubling it for the sake of infrastructure would really help nor hurt much; I doubt too many would put off tires over a $4-10 increase, but a slight increase in used tire sales might occur.
You make a good point that I did not consider with the proposal, but perhaps that could be another formula for credit based upon usage percentage.  I know it appears complicated, and just about everything in life appears to be these days to try to get something fair out of it (which again, rarely happens).
One funding source will not be enough to pay for new infrastructure. It will probably be a lot of things like fees, some toll roads, taxes, etc that will be combined to help pay for it. Much like now, except very little will be collected from the gas tax. Even now, California's highest in the nation gas tax is only 57.66¢. The difference in gas prices in California and the cheapest prices in other states is more a symptom of just being California than just the tax.



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