Gas Tax Holiday – Will it Lead to Unintended Consequences? 

I quickly jumped on the bandwagon for this one, but I've reconsidered and now I'm not so sure.  As a temporary measure it might provide some relief for the troubled trucking industry, but over the long term some critical analysis is necessary.  Secretary of Transportation Peters has posted an interesting blog on Fast Lane which proposes discussion and debate on the topic. She suggests “It is time for our country to embrace a far more efficient, clean, and technology-based approach to charging for road use.”  She further states,  “Through the broad deployment of high-speed, open road tolling technologies coupled with hundreds of billions of dollars of private sector capital, we can begin eliminating our dependence on a failed gas tax-based transportation model.”   

The fact is that our road infrastructure needs to be funded and paid for.  The how part is the issue that will garner the most attention.  The reality is that most people would say we need to have a well-defined road construction and maintenance program, but I don't want to pay for it - or at least it must be fair.  So what's fair?  Peters seems to be suggesting tolls as well as private sector capital.  Tolls I understand, but private sector capital needs definition.  Does that mean trucking companies, truck and automobile manufacturers, tire producers?  We're all dependent on our transportation infrastructure either directly or indirectly, so exactly how will the money be acquired for construction and maintenance from private sector capital?  And private sector capital really means the individual citizen, because ultimately all taxes are paid by individuals.  The cost of a tax is part of the cost of goods sold or services provided,  no matter how you disguise it.  

Dan Little, CEO of Owners Operators United Inc. addressed the issue briefly in a recent CNN interview.  He expressed concern about “pork barrel” legislation that brings road construction projects to many areas where the project may not be necessary.  He also suggested that many highway infrastructure dollars are diverted by our legislators to other non-road projects.   

The rising cost of fuel has focused attention on this issue.  It's an important topic for discussion, but no simple answer may be revealed.  You can weigh in with your thoughts at Fast Lane.

Or post your thought here.