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General discussion

How are our federal and state highways funded?

Apr 25, 2017 6:43PM PDT

The other day I was in another forum when someone brought up the off topic subject of gas taxes. It got me wondering just what fuel taxes are charged for which type of fuel and how much the federal government charges in addition to what each state charges. So, I did a bit of a search and came up with this Wikipedia article that pretty well sums things up in one place. https://en.wikipedia.org/wiki/Fuel_taxes_in_the_United_States

In addition to which, did you know that funding for our highway system also comes from other places such as several Federal registrations, etc. that trucking companies have to obtain and pay for to legally operate plus State 'permits' that each and every commercial trucking company and Owner Operator in this country has to pay for each and every truck they operate commercially on our streets and highways?

To find out about Federal requirements to operate trucking companies you can visit https://www.fmcsa.dot.gov/registration and peruse the various pages there to learn what it takes to operate trucking companies from a legal and financial standpoint. To find out more of the finer details about what your own State charges you can look that information up by doing a search for “ 'Your State' fuel taxes” (without the quote marks, of course!) You can do the same to find out more about what your state charges for “commercial vehicle permits” by doing a similar search.

The money that is raised from fuel taxes and the requirements of trucking companies goes to administrate, build and maintain our highway system. Do any of you know any other ways that our highways are funded? Have we all taken our highway system for granted? Or have we given thought to what would have happened if this system never existed or even if that system should that no longer exist? When you stop to think about it, what conclusions do you come to?

Discussion is locked

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Thanks for your calm, factual and courteous post.
Apr 25, 2017 6:57PM PDT

Now, get outta here! Happy
I've always thought the system and its funding were a rare case of governmental sensibleness. (An oxymoron, I know.)
I also know that it is aging beyond the ability of the funds to correct. What to do? What to do? Beats me.

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You're quite welcome...
Apr 25, 2017 7:36PM PDT

"What to do?" in deed.

I know that the state of Missouri has tried twice so far to make the rather outdated and extremely congested stretch of I-70 between Kansas City and St. Louis a toll road. It failed twice to pass a vote in general elections.

I-70 is only two lanes going each direction once you get out of the Metros of Kansas City, Columbia and St. Louis. It's like having to fight city traffic in those two stretches of basically rural highway. It's heavily traveled by truck traffic as it's a main artery of this country. It's getting [somewhat] dangerous [so far] for both truck traffic and smaller vehicle traffic. As an ex-trucker, I really feel for those commercial drivers who have no choice but to use that route after construction starts. What's a P.I.T.A. now will become a real headache until the project is finished. It'll likely take several, if not many, years to complete. But, I also know that there are bound to be many other areas of the country where the same thing is likely true, too. You are correct. It boggles the mind!

Note: Title edited by moderator.

Post was last edited on April 26, 2017 8:46 AM PDT

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Did you also know or discover
Apr 26, 2017 3:58AM PDT

in your searches for information that every tax the State collects "on behalf of the Federal Government" all goes back to DC and that THEY make the decision how much of it they will send back to each State and actually 'redistributes' it according to what pressure is used by individual Congressional (both House and Senate) members put on the budget committee? Therefore, smaller States usually end up literally getting the short end of the stick because newer members are usually low on the pressure totem pole and don't get much attention. States like CA, NY, and FL most times end up with the largest portions of Federal funding because they have more representation and are long term members who are voted into office repeatedly. A good majority of taxes paid by smaller States like RI or DE are actually given to other States rather than getting back what they actually paid.

I've always felt that the system was unbalanced and definitely not fair and should be changed dramatically to give back to the States exactly what they paid into it and if they need more, like CA that has a severely large population compared to other States), their Governor should be required to figure out how to get the extra from within their own State by cutting back on the 'entitlements' that they give away on the backs of others or other ways. When you get to the point where your State 'needs' to depend on the other States to keep them going, it's time to get new leadership and change the 'rules'.

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"Quite" NOT "Quit"...
Apr 25, 2017 7:37PM PDT

I HATE typos! LOL!

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I fixed it for you.
Apr 26, 2017 8:46AM PDT

Will join in with another comment soon.

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It's going to get worse before it gets better. Why?
Apr 26, 2017 8:54AM PDT

The message is loud and clear that with higher MPG the taxes collected are falling. For this reply I'll keep it to me and my friends.

All have moved from 20ish MPG cars to 35 and higher MPG. A few have bailed out of their F series trucks to 35 and higher MPG cars. This overall means a 50 percent reduction in fuel use.

That's a big number.

And it only gets worse. I took the plunge and got an EVcar. In the past 6 months I bought 10 dollars of gas and probably didn't need to do that. So effectively I went to zero.

-> California finally saw this as a problem and tacked on a 100 dollar a year fee for EVcars. Seems fair since EVcars were paying zero. It couldn't go on like that forever.

We avoided the pay per mile system which to me is a boondoggle. A pay per mile system seems fair but would have created a new system to read the odometers and another bureaucracy to manage it all. Since we didn't have that in place, the set fee for EVcars and a gas tax raise is the next best thing.

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Odometers are 'tamper-proof' but not entirely.
Apr 27, 2017 1:32AM PDT

I'm told it's so much trouble that few people do it. PPM will motivate more cheaters, won't it?
The "big picture" is, in my view, all of government as a package. The US is currently fighting wars on three fronts. Syria*, Afghanistan, Homeland Security. That's the elephant in the room. What chance do infrastructure, education, health care have against that?
*Drones, and now $90,000,000 for one rocket attack, parts only.

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Odometers.......
Apr 27, 2017 3:39AM PDT

Years ago, many used car dealerships were convicted of fraud because they would put vehicles on a machine that would spin the rear tires in reverse for long periods of time in order to cause the odometer to 'rewind' and take actual mileage readings down in order to increase the pricing of those vehicles.

Healthcare should be, in my opinion, a personal responsibility that you take on.....just like life insurance. They are both a gamble where only the insurance companies win in the long run.....they are betting you live a long time and never actually collect what you've paid into it, and you're gambling just the opposite will happen.

Infrastructure and Education also, in my opinion, except for certain circumstances, should be a State responsibility.

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Odometers on our new cars are software things.
Apr 27, 2017 10:49AM PDT

That to me means it's very tamper prone.

My point in my first reply is that demand destruction is real.