Republicans brought up a highway spending bill. This bill consisted of attempting to bring the Keystone XL Pipeline back from the grave, stopping funding for Amtrak, and tried to expand off shore drilling. This bill would never become a law mainly because the Democrats are against off shore drilling. But this bill also spotlights a major issue. America's old system for funding its highways is going downhill, and no politicians know exactly how to fix it.
Since FDR, the federal government has maintained a Highway Trust Fund which is paid for mostly by taxes on fuel, that helps ay for the construction of our roads. It originally was a good idea to make drivers have to pay at least something for the roads that THEY use. But the gas tax rate hasnt increased since '93 and inflation diminishes the value of the dollars that once were enough to pay for this. The problem is.....cars are becoming more and more fuel efficient. Thats definitely a good thing. Thats what we want, but Congress doesnt like this. More efficient cars means that you have to buy less gas. Less gas purchased means that these roads wont get paid for. No one is offering a good idea as to how we can make up for this loss of money.
Since FDR, the federal government has maintained a Highway Trust Fund which is paid for mostly by taxes on fuel, that helps ay for the construction of our roads. It originally was a good idea to make drivers have to pay at least something for the roads that THEY use. But the gas tax rate hasnt increased since '93 and inflation diminishes the value of the dollars that once were enough to pay for this. The problem is.....cars are becoming more and more fuel efficient. Thats definitely a good thing. Thats what we want, but Congress doesnt like this. More efficient cars means that you have to buy less gas. Less gas purchased means that these roads wont get paid for. No one is offering a good idea as to how we can make up for this loss of money.
1. Why won't the Republican sponsored bill at the beginning of the article ever actually become law?
it attempts to expand off shore drilling and Democrats arent going for that in the Senate
2. What is the Highway Trust Fund?
a fund that helps cover the repair and construction of our country's roads, bridges, and mass transit that is paid for mainly by taxes on fuel
3. What does the article mean when it says "inflation has eaten away a third of its value"?
the gas tax has remained the same since '93. the cost of everything else has increased which makes the dollar less valuable meaning what was a lot then...is barely anything now
4. How is it actually both a good and bad thing for Congress that Americans have consumed less gasoline?
good: more fuel efficient cars are emerging bad: less money is flowing into the highway trust fund
5. Explain what Exhibit 2.19 shows us.
assuming that average gas mileage for cars and light trucks would rise to 31 and 45 MPG the real value of the trust fund would eventually to drop by as much as 40%
6. Explain what Exhibit 2.21 shows us.
how much money the fund would need to maintain its purchasing power in 2008 dollars.
7. How have the Obama Administration's new gasoline consumption standards created new challenges for Congress?
he wants to increase the mpg even more, which would result in less gas consumption
8. What are potential solutions to the problem?
moving to a system that charges drivers based on the number of miles driven, rather than the gas they burn
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