How do we pay for our highways once...?

Question

We come up with vehicles that run on alternative fuels such as hydrogen fuel cells?

Currently we pay for our highway improvements through gas taxes that we all pay as we purchase fuel at the pump.

I saw a GM commercial advertising a hydrogen fuel cell vehicle when it dawned on me that if we convert to alternative fuels that run longer or do not need to be fueled as often we will have,
A: Less revenue recieved to maintain our roads through taxation on fuels
B: No way of making up that lost revenue on alternative fuel sales
C: and Just as many vehicles causing wear and tear on the roads we drive on.

How do you propose we could make up the lost revenues?

Interesting answers so far. One person thinks that the other taxes and permit fees are enough to cover the short fall what WILL be experienced with the conversion to fuel cells or new fuel systems the other believes that they will keep raising the fuel tax.

Well one person has an interesting take on the questions. I bet the government will raise taxes on gasoline to make up the difference, but a lot of good it will do with fewer people buying gasoline powered vehicles. Regarding big trucks paying more taxes and fees for their road use. That is probably true, but the shear numbers are against that theory. I haven't done the research but I am certain that our national highway and bridge system is paid for by fuel taxes and surcharges levied at both the federal and state level. Fewer people buying gasoline means less to use to maintain that system. Yeah government will find a way to fund it, but AFTER it becomes a problem, instead of BEFORE it does.

Answer 1

How do you reckon that we'll have less revenue to maintain roads? First off, while we generally refer to "gasoline" taxes, the truth is that there are taxes on ALL highway fuels. The highway fuel tax legally is due on all fuels used on roads and highways, not just gasoline.

At present, so few folks run anything other than gasoline or diesel that any lost revenue from alternative fuels is miniscule. For example, most diesel engines will run just fine on kerosene or jet fuel, both of which can be purchased for less than the cost of diesel. Fortunately for the government, not a lot of folks are aware of that fact and there are few stations where you could buy kerosene or jet fuel dispensed directly into a motor vehicle.

As alternative fuels make deeper penetration into the market, the government will figure out how to levy highway fuel taxes on whatever is being used, whether it's hydrogen for fuel cells or vegetable oil for diesels. Given that it's likely to be at least 20 years before hydrogen powered fuel cell vehicles make up any meaningful percentage of vehicles on the road, the government has plenty of time to work out a way to tax the fuel. Ask any trucker about the hassle of dealing with fuel permits -- let's hope it doesn't come down to that for the average motorist!

Answer 2

Fuel taxes aren't the only money paid in that is SUPPOSE to go to maintaining the highways. There are also taxes like PUC-Highway Usage taxes and permits and I'm sure others. These are some of the reasons the truckers are hit so hard by things like hikes in fuel prices. They pay through the nose to run their trucks and when the truckers take a hit they have to raise their rates which bounces back on the consumers. I'm sure that if the revenue goes down because of less fuel consumption, the government will not have any dificulty finding a way to tax something to make up the difference.

Answer 3

Seriously! You don't think that the government will create a new tax to come up with the shortfall? Its either that or keep raising the tax on gasoline.

Look at the tax on cigarettes. Back in the 1950's and 1960's, almost 50% of adults were smokers. Now its down to about 20%. Cigarette taxes keep getting raised to make up for the shortfall.