Do You Know How Your State’s Roads Are Funded?
No one wants to drive on a crappy, rough road. We all want them fixed, but do you know where that funding comes from to be able to fix our roads in the state? Gas taxes are largely used to fund infrastructure maintenance and new projects, but the amount of state and local road spending covered by gas taxes, tolls, user fees, and user taxes varies widely among states.
Janelle Cammenga with the Tax Foundation, reports Indiana is 43.3% funded by gasoline and license taxes and 0.7% by tolls and user fees. Though politically unpopular, gas taxes, fees, and tolls are all relatively good applications of the benefit principle—the idea that the people paying the taxes and fees should be the ones to benefit from them. For more on this article on Tax Foundation, click here.