This is the Cato Daily Podcast for Wednesday, May 16, 2012. I'm Caleb Brown. Gas taxes are on the way out. They are at best an imperfect user fee to get roads built.

Gas taxes also fall disproportionately on the poor,

who typically own older less fuel efficient cars.

Kito Institute's Randall O'Toole is author of the new report ending congestion by refinancing highways.

We spoke today.

Most highways at the federal and state level are funded through gas taxes, and, but that doesn't

cover nearly all of the costs associated with highways as you

note that local governments spend a lot more money to provide local roads. And something funny that you note is that gas taxes are

becoming a less effective way to fund roads because cars are becoming more fuel efficient and that is it tends to

erode the ability for governments to collect that revenue. I think at first blush you look at

that and you think well that's not so bad right well

it's not so bad that cars are becoming more fuel efficient but it does mean that the

gas taxes are on their way out and everybody knows that the congressional

budget office recently predicted that even with increases in driving

after the end of the recession, we can expect that total gas tax revenues are going to decline

by 20% in the next 30 years because cars are becoming more fuel efficient faster than

people are increasing their driving.

So what is the solution to that?

You say that gas taxes are at best an imperfect user fee.

Well, I think for a long time people have wanted to understood the gas taxes aren't working anymore

and they've wanted to transition to a vehicle mile fee where you pay by the miles you drive rather than by the

gallons of gasoline you consume. That's more fair because more fuel-efficient cars today,

...