It wasn’t long ago, the government mandated car manufacturers produce cars that got better gas mileage. Do you remember this? I do.
The car manufacturers complied, the new model cars got better gas mileage, and the consumers started buying those autos. After all, we all wanted to save money when it came to buying gas. Of course, less gas consumption – meant the price of gas went up. Surprise, Surprise!!!
Now the highway trust fund is at the risk of running out of money starting August 1, 2014 – that was just last week. Why you ask? It seems the fund isn’t receiving enough money from gasoline tax to supply highway funds to every state in the U.S.A. Many state projects will be hit hard and projects such as road construction, repair projects will have to be postponed, cancel, or just stay on the drawing boards.
You ask how did this happen? The answer can be found in three sentences. Thanks to the more efficient cars – remember the ones the government insisted be built. The price of a gallon of gas, which has kept travel down has affected the tax base. Since 2007, there has been a 6% decline in gasoline consumption.
There is a lot of posturing by the government on how this deficit can be fixed. I’ll just bet – since the gasoline tax hasn’t been raised since 1993 and the consumer price index has jumped 61% in the same time frame – the government will have to take some action. Either raise the gasoline tax or pass a law to outfit vehicles using public roads with GPS mileage tracking devices. The government will then start a whole new government agency for tracking, printing of yearly mileage bills, and hiring more federal employees. Sounds like one of their plans to me. What do you think????
According to an article written my Aimee Picchi – Yahoo Autos – end of June 2014. The nation’s transportation sector is facing a fiscal cliff.
On another note:
Oh and don’t forget – the government has stated the cost of living hasn’t gone up. Yet, every time I go to the grocery store, I get less groceries, and spend more money. What is wrong with this picture!??