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Pros And Cons Of The Current Highway Funding Structure

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What are the pros and cons of the current highway funding structure as related the taxes paid by motor carriers? After reading this week’s lesson I came to realize that the current highway funding structure plays a big role in transportation policies through subsidy programs for the federal and state governments. Pros: Motor fuel taxes have been the most important revenue mechanism for highway programs at the Federal and state levels. Fuel taxes also support transit programs at the Federal level and in most states Motor fuel taxes are inexpensive to administer and have low compliance costs. Cons: Motor fuel taxes at rates sufficient to fund all needs would not add enough to fuel prices to significantly impact travel volumes. Fuel efficient
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