I never cease to be amazed at how the liberal/progressive/Democrat minds work. And here is yet another example of them “working.”
The Highway Trust Fund, the major source of federal surface transportation funding, risks bankruptcy as early as 2014, according to the Government Accountability Office (GAO), in part because of government-imposed CAFE standards and government-subsidized alternative fuel vehicles. (Whether CAFE is good or not is not being discussed here.) The Highway Trust Fund gets 90% of its funding via the federal gasoline excise tax. As car companies are forced to make more fuel efficient cars and are forced to produce more alternative fuel vehicles, the government expects that gasoline consumption will decline, leading to lower revenues from the federal gas tax. The government must reevaluate its transportation priorities. Simply spending more money, the GAO said, would not be the answer.
This “revelation” comes from a GAO report, “TRANSPORTATION Key Issues and Management Challenges,” issued on March 29, 2012.
Three solutions to this dilemma have been proposed:
Despite the solution proposals, the GAO said that they all are variations on one theme – federal debt. That debt would eventually need to be backed up by revenues, which comes from only two places: higher taxes and/or higher fees.
BTW, highways are not the only projects funded by the Highway Trust Fund:
All we can do is slowly shake our heads and say “Duh.”
But that’s just my opinion.
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