Is an increase in the federal fuel tax the sensible, economical answer to funding highway infrastructure projects? The American Trucking Associations thinks so. The organization recently put forward this suggestion to a House Subcommittee of the Ways and Means, adding that tolls, mileage taxes, and public-private partnerships are no good because they won’t provide sufficient and equitable long-term funding.

With the Federal Highway Trust Fund expected to run out of money by the end of the summer, lawmakers are scrambling to find new ways to pay for much-needed repairs and road work across the country without putting the squeeze on already recession-weary taxpayers. Debate has largely centered on raising the gas tax. Other ideas being floated to pay for road work include:

• <!--[if !supportLists]--> <!--[endif]-->Issuing up to $60 billion in 10-year treasury bonds

• <!--[if !supportLists]-->Levying a $1 fee per barrel of crude oil

• <!--[if !supportLists]-->Instituting a transaction tax on speculative crude oil trading

• <!--[if !supportLists]--><!--[endif]-->Allowing the Highway Trust Fund to earn interest on cash balances

• <!--[if !supportLists]-->Charging user fees, including a mileage tax and taxes on vehicles over 55,000 pounds

A decline in fuel consumption and fewer truck and equipment sales have all contributed to a steep decline in revenue flowing into the Trust Fund.

Obama fears that a new highway bill will not be passed before August recess, and has suggested continuing the current law for several more months as one solution. The President also wants Congress to provide a few billion dollars in general fund revenue to help bridge the funding gap until a more permanent solution can be found.

Do you agree an increase in the federal fuel tax is the answer? Let us know your ideas on how to fix the Highway Trust Fund.