STRATEGIC ALTERNATIVES FOR FINANCING THE HIGHWAY SYSTEM

This article explores the inherent flaws in the current gas-tax approach to funding highways. These include political barriers to raising user taxes, unpredictable revenues, and lack of linkage between user fees and highway system costs and benefits. It then proposes some strategic alternatives that may build on or replace the gas tax with financing that links highway usage more directly to user payment and accounts for the full costs of highway travel.