Here We Go! Higher MPG Will Result in Lower Highway Funds - Some Suggest Taxing Hybrids, Other Fuel Efficient Vehicles May Be Necessary

Washington DC November 28, 2005; The AIADA newsletter reported that A new report commissioned by the U.S. Chamber of Commerce suggests that the six-year $286.4 billion highway and public transit act signed by President Bush just less than four months ago will not be adequate to cover the costs of maintaining roads and bridges.

To combat the potential shortfall of some $500 billion of what is needed to maintain the nation’s roadways through 2015, some are suggesting a possible tax on hybrids and other fuel-efficient vehicles and charging drivers for miles driven.

In its new report, the Chamber estimates that the highway part of the transportation fund will hit a zero cash balance in 2008, and as such, are urging Congress to seek additional sources of revenue. ’’Decisions are going to have to be made in the very near future,’’ said Ed Mortimer, the business lobby’s director of transportation infrastructure, acknowledging it could be a tall order.

The next highway bill is years away, and lawmakers may be loath to return to a measure that was widely criticized for being padded with thousands of special-interest projects,” reports AP.

To read the executive summary of the Chamber’s Future Highway and Public Transportation Financing report, CLICK HERE here.