Financing the Highway Trust Fund

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The Federal Highway Trust Fund is running out of money, and policy makers are planning a temporary $5 billion rescue.
 
According to Reuters:
 
"The U.S. House of Representatives could vote as early as Wednesday on a $5 billion stop-gap to shore up a depleted trust account that funds road and bridge repairs ...
 
The Highway Trust Fund, filled by gasoline taxes, has been running dangerously low on cash as motorists use less fuel amid recession and drive more efficient cars ...
 
The U.S. Transportation Department says the $5 billion stop-gap is the minimum needed to carry highway programs through the end of the fiscal year on Sept. 30. A second extension then would be required."
 
The Senate is also proposing a larger $27 billion transfer from general revenue in order to keep the trust fund afloat.
 
Given the current economic crisis and the risks of stalling infrastructure projects, we probably do need the $5 billion stop gap. In general, though, this is the wrong way to be financing the trust fund. The highway trust fund is financed through a gas tax, and it should stay that way. Rather than transfering money from our deficit-ridden general funds, we should be increasing the gas tax.
 
The 18.4 cent per gallon gas tax has not been increased since 1993, and thus has eroded due to inflation. Raising the tax by a mere five cents next year, and indexing it to inflation thereafter, could raise as much as $150 billion in a span of 10 years.
 
And increasing the gas tax to finance the highway trust fund has at least three advantages:
 
1) It tightens the link between highway users and highway payers.
 
2) It encourages conservation and fuel efficiency, which could help slow the pace of global climate change.
 
3) It doesn't require us to increase our public debt.
 
Detractors might say that, given the current state of the economy, now is not the time to be raising taxes -- especially taxes on consumption.
 
Maybe they are right. But 5 or 10 cents is a rounding error compared to the kind of gas price fluxuation we've been seeing recently. And if we are really concerned, we can expand the $400 per person "Making Work Pay" tax credit for the next couple of years.
 
The bottom line is this, though. We can't afford to keep throwing money at problems when we are running out of money to throw. Let's develop just a little bit of courage, and raise the tax that everybody knows we should.