Is anyone surprised that the Highway Trust Fund is running out of money? As the CAFE (corporate average fuel efficiency) has increased, the money from gas taxes (both state and federal) has decreased.
Now that the feds are considering increasing the gas tax, (don’t forget that Gov. Jay Inslee policies could increase the state tax, too) the tax revenue death spiral will begin. More electric cars, higher mileage cars and fewer miles driven will decrease gas tax revenue even further. How do you tax the electric cars?
Perhaps it is time to start imposing a ton-mile-tax on cars and trucks and tax the studded tire out of the market (thus reducing the abnormal pavement wear) that cause the ruts that need to be repaired. Balancing the highway tax income to the structural repair costs and highway patrol expense may prevent death-spiral funding problems.