Virginia's Bold Plan to Fund Roads Without a Gas Tax

As the debate over tax reform stalls in Washington, the action has moved to the states, where several Republican governors are looking for ways to not only cut taxes but eliminate some entirely. Kansas, Nebraska, and Louisiana are all considering doing away with personal and corporate income taxes and replacing them with a higher sales tax.

A bolder experiment is under way in Virginia, where Republican Governor Bob McDonnell has proposed scrapping the state’s gasoline tax. Nine states already get by without income taxes, but all 50 tax gas. For decades, Democrats and even small-government Republicans have accepted gas taxes as the fairest way to build and maintain highways. Those who use the roads most end up paying the most. And because people keep driving in good times and bad, it’s a reliable stream of income.