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Thursday, September 24, 2009

Missouri Frets Over Fuel-Efficient Cars, Reduced Driving

Missouri is a perfect example of the hand-wringing going on among bureaucrats. The question is how to replace the revenue from the gas tax.

Fuel-saving vehicles and declines in driving have led to a drop in fuel-tax revenue, which finances all of the highway trust fund. Momentum for increasing highway and transit spending in a new bill, possibly by raising fuel taxes, slowed as the unemployment rate rose last year, Rahn said.

I imagine the same thing would happen - or worse - if Americans gave up smoking cigarettes and reduced their tobacco taxes.