An Economic Analysis of Oregon’s 2007 Road User Fee Pilot Program Essay

I. Introduction and Background The flatulency measure has provided tax income for the national and bring up Highway Trust Fund (HTF) for decades however, the tax income rates have remained stagnate leading to the funds depletion. The HTF is responsible for sustenance highway and mass transit projects and also maintenance of those projects at the Federal and State level. In 2005 around 80 percent of funding for only projects came from the gasoline tax (Kim, Porter, Whitty, Svadlenak Lareson, Capps, Imholt & Person 2008, pg. 37). Thus, it is vital for the HTF to be a revenue collecting system that can replace the gasoline tax. operating theatre has tardily begun testing an alternative revenue collection program to fund their HTF. Currently, State gasoline tax is set at 24 cents per-gallon and that is on conduct of the Federal gasoline tax of 18.4 cents, which only, 18.3 cents is used for roads, the total tax equals to 42.4 cents per-gallon (McMullen, Zhang, & Nakahara, 201 0, pg. 360) (Austin & Dinan, 2012 pg.2). The gasoline tax has not been raised in years and is unable to preserve up with fuel-efficient technologies. Consequently, the Federal government has had to allocate funds to States HTF for projects along with States having to absorb money form their other accounts. Therefore Oregon proposed the 2007 Road exploiter remuneration Pilot Program to test if a vehicle gasoline mileage traveled (VMT) tax is a feasible solution to the gasoline tax. Oregons propose program is in response to new fuel-efficient vehicles and corporeal average fuel economy ( coffee shop) standards that have forced the automotive industriousness to rise miles-per-gallon in new vehicles to help combat climate change. It is estimated that CAFE standards have lower the gasoline tax revenue around twenty dollar bill percent (Austi... ...Evaluation of Oregons Vehicle-Miles-Traveled Revenue Collection System. shipping Research display panel 2079 37-44. Print.McMulle n, Starr, Lei Zhang, and Kyle Nakahara. Distributional impacts of changing from a gasoline tax to a vehicle-mile tax for light vehicles A case study of Oregon. Transport form _or_ system of government 17 359-366. Print.Rufolo, Anthony, and Thomas Kimpel. Responses to Oregons Experiment in Road Pricing . Transportation Research Board 2079 1-7. Print.Thomas, Michael , and Kevin Heaslip. Technological Change and the Lowest Common Denominator business an Analysis of Oregons Vehicle Miles Travelled Fee Experiment . Journal of metropolis and Town Management 2 1-23. Web. 6 May 2014.Whitty, James. Oregons Mileage Fee Concept and Road User Fee Pilot Program final exam Report . Oregon Department of Transportation 1 Nov. 2007 iv-92. Print.