So Pithy

Funds for Highways Plummet As Drivers Cut Gasoline Use

A report to be released Monday by the Transportation Department shows that over the past seven months, Americans have reduced their driving by more than 40 billion miles. Because of high gasoline prices, they drove 3.7% fewer miles in May than they did a year earlier, the report says, more than double the 1.8% drop-off seen in April.

The cutback furthers many U.S. policy goals, such as reducing oil consumption and curbing emissions. But, coupled with a rapid shift away from gas-guzzling vehicles, it also means consumers are paying less in federal fuel taxes, which go largely to help finance highway and mass-transit systems. As a result, many such projects may have to be pared down or eliminated.

Here’s the thing: isn’t 3.7% fewer miles made up for by much higher gas prices? The taxes are based on a percentage of gas prices, so as long as Americans are spending at least the same amount on gas, it doesn’t matter if they drive less. And from what I’ve heard, Americans are spending more on gas, not less.