Could we really repeal the federal gas tax? Yep

Republican presidential candidate Nikki Haley recently proposed eliminating the 18.4 cents per gallon federal gas tax. She reiterated her support for the idea at the second Republican debate in California.

Federal gas tax revenues go into the Highway Trust Fund and then are dished out to the states to use on highway and transit projects. However, since 98 percent of the nation’s streets and highways are owned by state and local governments, it would be simpler and more efficient if those governments were responsible for the funding. Having the federal government raise the funds and then return the funds to the states with regulations attached is unnecessarily bureaucratic.

States have the best information to determine their local infrastructure needs. States that want to improve their highways can increase their own state‐​level gas taxes, sales taxes, or user charges. Or they can issue debt or pursue full or partial privatization. The states have all the necessary fiscal tools to tackle their own infrastructure challenges.