Tax the Streets

New Funding Ideas Are Needed for U.S. Roads and Highways

When George Harrison wrote “Taxman” back in the 1960s, that line came across as witty hyperbole. Surely they can’t really tax the street? Well, guess again.

Amid all the fanfare


For the past 80 years, Americans have paid for highways largely through taxes levied on motor fuel. The reasoning is simple. If you are buying gasoline or diesel fuel, you must be using the roads, and vice versa.

But gas taxes haven’t risen fast enough to keep pace with demand for new roads or repairs. The 18.3 cents a gallon federal gas tax hasn’t increased since 1993.

Meanwhile, demand for highways has surged over the past three decades. The highways are more crowded than ever. In the bigger urban sprawls, drivers are wasting 40 hours a year crawling in traffic, according to a Texas Transportation Institute study cited by President Obama in his budget message.

Wall St. Journal