Reduced driving leads to crummy roads

November 21, 2008

Fewer cars on the road apparently isn't necessarily a good thing. In fact, reduced driving is likely to mean our roads and bridges will deteriorate more quickly.

Isn't that a bit counterintuitive?  I mean, the fewer cars on the road, the less pounding the asphalt takes, right? And that means it's a smoother ride for those fewer vehicles hitting the highways.

Highway1 (2)
But that's not how it works in the real, and tax, worlds.

High fuel costs lead to less driving. That means fewer fill-ups. Which means fewer fuel excise tax dollars collected. And that means a smaller balance in the federal Highway Trust Fund, which pays for major road and bridge repairs.

Highway Trust Fund revenue fell $3 billion in fiscal year 2008 as Americans drove almost 11 billion fewer miles, according to the U.S. Transportation Department

Transportation Secretary Mary E. Peters noted that we drove 4.4 percent less, or 10.7 billion fewer vehicle miles traveled, in September 2008 than September 2007. It was the 11th consecutive month of declining driving.

And while the road repair account took a $3 billion hit, DoT officials say federal transportation spending increased by $2 billion.

It doesn't take a math whiz to see exactly what road that calculation will take us down.

Gas taxes across the USA: The The American Petroleum Institute (API), the national trade association for the U.S. oil and natural gas industry, regularly tracks gasoline and diesel fuel tax rates. API's October data shows that the national gas tax average, a combination of federal and state levies, is 48.4 cents per gallon.

The map below gives a good indication of where
gasoline taxes are higher. Red states have combined federal and state gas taxes greater
than, and in some places much greater than, 48.4 cents per gallon. Yellow state taxes are between 40 and 48.04
cents
per gallon. Blue states charge less than 40 cents per gallon.

API_state_gas_taxes_October08

You
can click on the map for a larger version (or here if you're reading via feed; to see a map of diesel taxes, click here).

More details on state fuel tax rates can be found in API's chart (PDF version), which reflects a weighted average for each state. This means that any taxes which can vary across a state's jurisdiction are averaged according to the population of the local areas subject to each particular tax rate.

Lower gas prices, more tax revenue? There is hope, however, that the Highway Trust Fund might get a bit of a boost.

Crude-oil prices have fallen below $50 a barrel, and the average cost of a gallon of gasoline is just over $2. The last time motorists paid less than $2 for a gallon of gas was March 2005, when a gallon of regular cost an average $1.99.

As the prices at the pump increased, we changed our driving behavior. Mass transit and car pooling gained converts. When we had to driver, we hit the road in smaller, more fuel-efficient autos.

Will we keep it up when gas is more affordable? Maybe. Maybe not. If we do, that's better for the country and environment in the long run. If not, then at least the increased fuel purchases will add to the highway repair account.

Regardless of what you drive and the price of gas, it never hurts to squeeze the most miles you can out of your auto, especially in this economy. These 10 tips to help you get better mileage.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
Earnings statement detailing total earnings, deductions, and year-to-date amounts. Key figures include current earnings of $4,389.30.
IRS revises online withholding tool to account for new tax laws

March 12, 2026

Getting your paycheck tax withholding amount just right pays off at tax-filing time and throughout…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • the roads in my neighborhood are getting worse every day. this is sad to see.

  • Thanks for bringing to our attention that less driving has resulted in less tax revenue. I figured it would have gone down , but UI had no idea it would have been by that much. I am really proud of the american people looking to more fuel efficient ways to get around. I am also dismayed that the higher price of fuel is slowly taking away the freedoms we always felt when out on the road taking that american cross country road trip or vacation.

Leave your comment