tolls vs taxes

US Secretary of Transportation Ray LaHood in interviews with journalists is saying that a raise in the federal gasoline tax "won't fly" politically, rejecting the transportation finance commission's recommendation of an interim 10c/gallon gas tax, 15c diesel fuel tax increase pending implementation of road use charges (RUCs).

A finance commission set up by the US Congress in the last five year 'TEA' bill to advise on future road funding has suggested greater use of tolling and other pricing mechanisms. They say indirect funding through the gasoline and diesel taxes is unsustainable. It is generating grossly insufficient revenue and is causing wasteful distortions such as congestion.

US transport secretary Mary Peters in an interview with Traffic World lambasts proposals for enlarging the present federal tax-&-grant programs, pitching the case for its replacement by direct pricing of roads. Excerpts from the interview follow:

Mary Peters the US Secretary of Transportation had a strong column knocking proposals for higher gasoline taxes and a new US spending program in reaction to the collapse of the I-35W bridge in Minneapolis and the furore over deficient bridges.

Prepared testimony by the Congressional Budget Office (CBO) to the US House transport committee Mar 27 emphasizes the value of substituting tolls for taxes.