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Background In a recent article entitled How Will States Pay for Roads When Gas Taxes Evaporate, The Wall Street Journal argued that governments are struggling

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Background In a recent article entitled "How Will States Pay for Roads When Gas Taxes Evaporate," The Wall Street Journal argued that governments are struggling to find new ways to fund infrastructure as the number of electric vehicles grow and gasoline sales decline. The article notes that electric vehicles currently account for only 5 percent of new car sales in the U.S., but, according to sources, that figure will climb to at least 40 percent by 2030. As a result, states have begun to experience a drop in gas-tax revenue. States pay for roads in a variety of ways, including vehicle registration fees and tolls, plus money from their general funds. Gasoline taxes account for a large portion of revenue that are used to pay for this infrastructure. Thus, a drop in gas-tax revenue will affect a state's ability to fund road maintenance and construction. Instructions The Wall Street Journal describes the various ways the states are attempting to adjust for the decline in gas-tax revenue. These methods include raising the gas taxes or the vehicle registration fees, or imposing new fees on EV owners. Some states are even considering a road-usage fee, which would tax drivers based on miles driven, fuel efficiency, rural versus urban locations, each owner's income level or some combination of all four. What do you think? What actions, if any, should the State take to address the drop in gas-tax revenue? Or should the State use other funds, such as the General Fund, to replace the revenue? And, should the State continue to incentivize the purchase of electric vehicles when their sales have such a negative impact on state revenues

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