Review the video in the news-the case for toll roads


Assignment:

Highway construction and maintenance are funded mainly by motor fuel taxes (the gasoline tax). There is a federal gasoline tax (an excise tax) which is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel fuel. Then there are state taxes per gallon and, in some states, a sales tax as well as a gallonage tax. For an overview of state motor fuel taxes go to the American Petroleum Institute's Motor Fuel Taxes page. Since only those who have vehicles pay the motor fuel tax, it is also called a User Fee.

The federal motor fuels tax goes into the Federal Highway Trust Fund (it also funds public transit) which is a major source of highway funding nationally. However, as vehicles use less fuel because of higher mileage, the Trust Fund balance decreases. In fact is has been decreasing so rapidly, that there is a serious funding shortage given the needs for new highway construction and the need for highway maintenance.

The state highway trust funds are experiencing the same problem of declining revenues. Thus, states are looking for other ways to fund new highways.

1) Watch the video above and read "In the News: The Case for Toll Roads"

2) Also review the information on motor fuel taxes and the balance in the Federal Trust Fund using the links above. You may wish to do a search for your state's highway trust fund balance and motor fuel taxes.

3) What are the advantages and disadvantages of toll roads for driver? Why might an individual prefer to pay a toll than to use a free road?

4) Are there other ways to pay for highways other than tolls or higher motor fuel taxes? (Oregon is researching an alternative user fee system, you may wish to search for that information.)

5) Are there environmental aspects to the use of toll roads versus free roads?

USE THE LINK BELOW TO VIEW THE SHORT VIDEO. APA FORMAT PLEASE AND BETWEEN 250-350 WORDS.

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Microeconomics: Review the video in the news-the case for toll roads
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