Gas Hits $4.35, Finally Pays Full Road Costs

In fact, the subsidy ratio (or, in the case of roads, the "Asset Value Index") for TXDOT's infrastructure makes Amtrak's taxpayer-supported needs absolutely pale in comparison! It is estimated that gasoline taxes would need to be six times higher than they are today just to bring revenue in line with expenditures.

In other words, the average cost of one gallon of gasoline in Dallas would instantly jump from today's approximate of $2.50 (for regular grade) to an outrageous $4.35!

Finally, it seems some organization has published some truth, along with the appropriately made factual correlations.  I found this beauty written up in the Progressive Railroading Journal’s Website, written by Garl B. Latham titled “Do Roads Pay for Themselves?”.  Now, in addition to me being able to show, in simple math terms why roads don’t cover their cost anymore than other modes, I have this actual DOT report that backs up the obvious fact.  Roads are heavily subsidized.

Now of course, at this point, since we can all finally agree all modes are subsidized at heavy levels we can step back and determine if that is a good thing or a bad thing.  My take, is varied, dependent of course on what we as a society are actually trying to achieve.

As far as subsidies are concerned, what are others take on these expenditures?  Should policy be to selectively encourage more efficient usage based on environmental concerns?  Should policy be made to reduce overall subsidy so that the end user foots the bill relative to actual usage?  Should policy be made to actually equalize subsidy regardless of any particular condition; environmental, economic, or otherwise?

I’m betting somebody has some great ideas out there, it’s just a matter of getting them implemented.  ; )

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