2. Highway Finance: () Highway users are the primary represent the largest segment of highway user fees. In a certain state, in 2018, almost 70 percent of the reven derived from user-fees came from taxes paid when purchasing gas. Discuss four factors that affect the long- term viability of gas taxes as a stable source of revenue to fund highway system improvements? (Your response to this question should be generated with a word processor. Any handwritten submission will be assigned a grade of zero). source of funds to build and maintain the nation's roads. Fuel taxes (i) A state predicts that it will need $1.5 billion for construction of new roads and maintenance of existing roads in year 2025. It is forecast that 2 percent of the vehicle-fleet in that year will be electric vehicles with the remaining being gas powered vehicles. The population of the state is forecast to be 10 million persons in 2025 with the average number of vehicles owned per person being 0.75. It is projected that cach vehicle will be driven 11,000 miles per year, with gas powered vehicles achieving an average gas consumption of 25 miles per gallon (mpg). If the state plans to raise 99 percent of the required revenue from gas powered vehicles and the remainder from electric vehicles, (a) Determine how much each gallon of gas sold should be taxed to achieve the revenue target; (b) Determine what the annual flat tax for each electric vehicle should be to raise the appropriate revenue target; (c) If the state decides to raise the required revenue based ona tax per mile driven, determine what this tax rate would be. Make sure you show all the steps of your analysis