Mitigating future impacts to federal highway trust fund


Assignment:

Introduction to Transportation Management Introduction

1. Funding highway pros and cons

Pros

Heavy funding comes from the pay as you go taxes per gallon of fuel one purchases. The expressways have a dissimilar financing structure that pumps in more funds to the development and soaring of the modern highways. Further, the government did heighten the tax on the guzzlers, and this adds more revenue since many Americans like their cars big.

Cons

Fuel charges increase are never reviewed, and the government essentially depends on the taxes of the oil-driven cars. The amount of tax paid by the citizen is never disclosed hence one cannot estimate the collection correctly.

2. Wal-Mart

Consequently, Wal-Mart will face different difficulties in maintaining its vast logistic industry since the sustainability plan is too ambitious. By cutting on many products to reduce the carbon emission, the company is going to have a slowdown in expansion in the end. They have a long way to go if the sustainability is going to work and meet their goals. While investing on different forms of renewable energy and cutting costs on the company, Wal-Mart will have to reduce the rate at which it is growing across the globe to finance some of its boasted projects in the end.

3. Role models

Companies are encouraging people to be role models can be a good initiative for making people realize that even when working a particular job the need to be a role model in performing one's duties is left to you. With gaining more responsibility, individuals would perform better and make the world a better living place.

References

Berman, J., (2010). Wal-Mart rolls out ambitious sustainability plan.

Systematics, C. (2003). Assessing and Mitigating Future Impacts to the Federal Highway Trust Fund such as Alternative Fuel Consumption. Cambridge Systematics, Incorporated.

100 word response to this question please Good Day James,

Very good perspective regarding the hidden tax that is imposed by the federal government. Often times we as consumers are clueless on where our taxes go to. For instance, gasoline prices in the District of Columbia are one of the highest. This is because of numerous taxes added to the price of gasoline and diesel. Not only do consumers get taxed by the federal government, the city, and now a tristate tax to offset projects for the area. Do you think consumers in the United States should be made aware where each tax goes to in writing before they accept the charges?

Shant

100 word response to student Shant please Good Day Everyone,

We will look at how our tax payers and motor carriers taxed money is funding our roads and highways. The Intermodal Surface Transportation Efficiency Act of 1991 was enacted to authorize funding of safety on the highways, constructions of highways and roads, and mass transit programs. The program was conceived to achieve better infrastructure for the American public. It was also enacted to ensure the American public was protected from harm on the roads. The taxes imposed on gasoline sales would directly fund the creation, sustainment, and upkeep of our roads.

However, like any other government program, states and local politicians began directing the taxes for highways and roads to other pet projects for their community. This defeated the intention of using taxpayer money to fund projects. As taxes imposed by the federal government where implemented, the price of consumer items began to increase to cover the cost of the new added cost. The consumer, some would say was indirectly funding the government's highway safety initiative. When consumer goods are increased over years' time, there is a point where motor carriers would start delivering less of the product for consumption.

However, we continue to still enjoy the safety net provided by the government in maintaining our highways and mass transportation. Regarding Walmart, the company has taken the initiative to save money because of many reasons. The way Walmart packs and ships its goods has seen a more emphasis in lean packing, durable, and environmentally friendly boxes.

The weight of packaging has decreased, which has resulted in less wasted space on the carrier transport. This benefits Walmart, in terms of saving on more gasoline costs and shipping costs. These savings are passed onto consumers. In economic terms, Walmart ensures their place in being the cheapest store for American consumers and forces other competitors to lower their costs to better compete.

Shant

Response to philip 100words The current highway funding structure started it roots in an effective and efficient manner, to use gasoline taxes to pay for the completion of the interstate system and to fund maintenance for federal roadways. Throughout the years, the money received for this has fluctuated between being used for highways and bridges to being pillaged for other government programs. The overall ideal for the increased gas taxes to support maintenance for the highway systems is a good solution for budgetary constraints on the federal level. ISTEA's concept of funding provided a foundation of funding allocation for federal highways.

Once the conclusion of which roads were federal or state roads was complete, the issues turned to how much of the money from the imposed gas taxes would go to federal highway budget and how much would go to the states. The overall concept still provides safer roadways for mass transit.

Another issue that arises with the increased gas taxes throughout the years is that the overall price for consumer products increases when the gas taxes are increased. This causes some consumer products to become less desirable and reduces the need for transportation.

Sustainability efforts by Walmart will impact the larger logistics industry immensely starting with the simple concept of adding rethink to the 3 R's of packaging. Walmart has gone a step further and worked with its suppliers to reduce the weight and biodegradability of products.

This concept not only reduces the weight in the transportation modes (while reducing fuel costs) but also reduces the amount of the product that ends up in landfills. These initiatives reduce cost to the consumer and eventually forces their competitors to do the same practices in order to stay competitive with overall prices.

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