This is for background information on transportation system funding. A new report by the US PIRG Education Fund
Who Pays For Roads argued that "Today, general taxes paid by all taxpayers cover nearly as much of the cost of building and maintaining highways as the gas tax and other fees paid by drivers." The annual per household costs of driving over and above "user taxes" is estimated to range between $1,105 to $1,848. Here are some illustrative quotes (emphasis supplied):
$this->bbcode_second_pass_quote('', 'B')etween 1947 and 2012, the nation spent roughly $1 trillion (2009$) more on roads than drivers paid in “user” taxes and fees, according to data from the Federal Highway Administration.
Road users see the impact of gas taxes every time they fill up at the pump. But
the tax
subsidies they receive by virtue of driving are often unseen. In many cases, the tax-
man giveth back in subsidies a substantial share of what he taketh away in gas taxes,
reducing the net contribution made by motorists toward the construction and maintenance of the highway network. Among these tax subsidies are sales tax exemptions for motor gasoline (see below), the income tax exclusion for commuter parking expenses, corporate income tax subsidies to the oil industry, and forgone property tax collections on land used for roads.
Road users in states that exempt gasoline from the sales tax received, on average, a sales tax exemption of nearly 11 cents per gallon (based on gasoline prices in March 2015). The sales tax exemption in these states represents an implicit $9.2 billion annual subsidy to road users.
And, with more and more Americans pursuing multimodal lifestyles in which more people are no longer only “drivers,” “bicyclists,” or “transit riders,” but rather “all of the above,” the task of determining who is subsidizing whom is becoming increasingly complicated.
While it is impossible to develop a perfectly apples-to-apples comparison of the degree to which general tax revenues support various modes of travel,
it is likely that general tax expenditures to support driving well exceed those flowing to bicycling, walking, transit and intercity rail travel put together. On a net basis, therefore, the greatest subsidies go not to the modes of transportation with the smallest societal costs or the greatest societal benefits—transit, bicycling and walking—but rather serve to encourage more Americans to take to the roads.
It is unclear, however, whether highway bonds being issued today will be paid off with user revenues to the same extent as those of the past. Several states have now reached the point where the cost of servicing debt for past projects now soaks up nearly all current revenues from gasoline taxes.
Across the country, state highway officials continue to pursue big-ticket highway megaprojects, many of which cannot be justified by likely future demand and come with large societal costs. America already raises roughly enough money in gasoline taxes and other user fees to bring our highway system back to a state of good repair. . . the amount of money needed to return the current system to a state of good repair—the maintenance “backlog”—was $83 billion. In 2012, $105 billion of highway tax and user fee revenue was used for highways.
A 2014 analysis by Advocacy Advance of statewide transportation improvement
programs (STIPs)—short-term, fiscally constrained plans of transportation projects required of states under federal law—found that less than 1.5 percent of all funds were programmed for bicycle, pedestrian or shared-use projects. [
Report.pdf]
There are other reports showing the subsidies to highway motoring transport, such as
. These reports, like the quoted PIRG Education Fund report, reflect an agenda and seek to support that agenda.
I continue to think it is nearly impossible for the public to use readily available information to learn the actual truth about transportation costs, but I have focused on the PIRG Education Fund report because it is a different point of view than the usual propaganda and because I believe we should be moving away from car based transport as quickly as possible. The report implies we could both repair the roads and build public transit, bicycling, and pedestrian systems with the same money we spend now, just by not building new and not expanding existing highways.