The transportation infrastructure in the U.S. needs substantial investments, in the order of hundreds of billions or
Question:
The transportation infrastructure in the U.S. needs substantial investments, in the order of hundreds of billions or even trillions of dollars. The question is how to best pay for the infrastructure. Take highways for example, which are typically paid for three ways: through an increase in the gasoline tax; through an increase in tolls on the highways; or through an increase in general taxation with funds raised mainly through income tax. Each of these three options comes with has equity issues; such as balancing who pays for the highways with who uses the highways, balancing who pays for the highways with who has the means to pay, and balancing who uses the highways with who pays for the environmental degradation associated with highway use. Discuss the equity issues with each of the three options and recommend the option that you think is the most equitable for the people in the U.S. Your recommendation doesn't have to be one of the three options discussed here.