Change in How Motor Fuel Is Taxed Could Fund Transportation Bill

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Changing the way motor fuel is taxed could potentially bring in billions of additional dollars for transportation infrastructure projects over the coming years, a key transportation stakeholder says, but policy changes would also face a number of potential obstacles on Capitol Hill. John Horsley, executive director of the American Association of State Highway and Transportation Officials, suggests Congress could look at replacing the existing flat excise tax rate with a percentage tax on the sale of fuel. New revenue sources are needed, as money generated by the current fuel tax is unable to keep pace with expenditures from the Highway Trust Fund, which pays for road, bridge, and transit projects.