Inequality is a hot topic these days. Everyone seems to want to write about it. The launch of TheUpshot, the new project from the New York Times, included a story on the wealth of the middle class, the Times Sunday...
- Scott Drenkard and Mark Robyn quoted by Fundweb on gas taxes
Scott Drenkard and Mark Robyn quoted by Fundweb on gas taxes
No pain at pumps, no gain on roads
Fund Strategy - 30 Apr 2012 | By Vanessa Drucker
America has halved infrastructure spending from 4% to 2% since the 1960s but economists argue if gas taxes were increased, it would raise funds to pay for much-needed infrastructure.
Scott Drenkard and Mark Robyn, at the non-partisan Tax Foundation, contend that tolls are the fairest way to allocate resources by aligning costs and driving preferences. Those two economists note with interest the successful effects of congestion zones in London.
Robyn says: “The weakness of gas taxes is that they are not a good approximation of what it costs the government when people use roads.”
Remarkably, stunning efficiencies have contained American oil consumption, at just 300m barrels more in 2010 that 1970s levels, despite a 30% population increase. Drenkard notes: “There have been some ebbs and flows (the early 1980s were the lowest point) but even with wild advancements in technology and growth in population, we aren’t using oil at breakneck speeds in the US.”
See the updated 2014 version of this report here.
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