Friday, September 05, 2008

Reduced driving and it's affect on taxes

Here locally we've faced a similar situation where the city was counting on a certain dollar amount from red light camera fines. Part of the reason it was stated that did not happen was a 5% reduction in driving here in Toledo. This is also a federal issue.

An unprecedented decline in driving will deplete the federal Highway Trust Fund by the end of September and prompted the Bush administration on Friday to ask Congress for an $8 billion emergency infusion.

Gasoline sales are crucial to maintaining the nation's highway infrastructure. About 90% of the fund's total revenues comes from taxes on motor fuels, according to a July report from the Congressional Budget Office.

Without the additional money, the Department of Transportation will not be able to fully reimburse states for their highway investments. Officials are projecting that in September the department will collect $4.4 billion in funding requests but collect only $2.7 billion in revenues.

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