Take a second and listen to what Ronald Reagan had to say about the federal fuel user-fee 鈥 his solution to maintaining America鈥檚 roads and bridges and funding infrastructure improvements:
It's easy to understand why President Reagan twice oversaw increases in the so-called聽"fuel tax":聽Because there鈥檚 no tax that safeguards taxpayer dollars as vigorously as the fuel user-fee does.
Contrary to the demagoguery surrounding this policy, the 鈥渇uel tax鈥 is a model example of federal revenue efficiency. That鈥檚 because it鈥檚 collected at the wholesale level long before gasoline reaches the retail pump. There are roughly 1,300 wholesale racks across the country collectively operated by less than 270 entities 鈥 meaning fewer than 300 entities actually remit this tax.
The result is a tried-and-true system that minimizes overhead costs and maximizes efficiency 鈥 value 鈥 for road users. Ninety-nine cents of every dollar collected flows directly into the Highway Trust Fund. Compare that to alternatives like tolling or vehicle-miles tax systems, where as much as 20 cents of every dollar is lost to administrative, collection and overhead costs.
It is deficit-neutral, generating hundreds of billions of dollars in new revenue without adding a dime to the federal budget deficit. The apparatus to administer it already exists,聽which means no new government programs or bloated bureaucracy are required.
It鈥檚 time for Americans to reclaim our roads and bridges. We deserve infrastructure fitting of the world鈥檚 greatest economy. What it takes is real money 鈥 not fake funding. We urge Washington to take action to repair our nation鈥檚 roads and bridges.
It鈥檚 time to get America moving again.