Gas tax falling short in paying for transportation needs
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This is important — if you drive or ride in an automobile, if you commute by bus, rail or bicycle, or if your loved ones do.
STORY: Road funds at risk in some states over safety rule STORY: Feds fund billions in road projects but don't track fundsThe USA is at a critical juncture in how it pays for roads, bridges and transit. That's because the federal tax on gasoline, the primary method since 1956, has lost one-third of its buying power since it was last raised in 1993. States add their own tax on top of that, but the federal tax accounts for about 45%-50% of capital spending for transportation.
The federal gas tax — 18.4 cents a gallon for gasoline, 24.4 cents for diesel — is growing anemic because of more fuel-efficient vehicles, Americans driving fewer miles and the growth of electric and alternative-fuel vehicles. The tax rate on gasohol and most other special fuels is much less.
