Friday, December 14, 2007
Fuel Taxes and Road Construction
Here is an item that illustrates the Catch-22 between fuel taxes and road construction. You need to levy fuel taxes to raise funds for traffic infrastructure maintenance and construction. But doing that will punish people for driving and keep them off the road. On the other hand, if you don’t raise funds for road maintenance, the roads will just get worse, more bridges will collapse, and people will be kept off the roads. We’re damned if we do, and damned if we don’t. This situation is going to kill off motorized transportation even faster than high fuel prices alone would do it.