Reason TV: Veronique de Rugy: The Facts about Transportation Spending:
The United States spends about $160 billion annually on highways, with about one-fourth of that total coming from the federal government. Highway spending was originally supposed to be funded by gas taxes and other highway user fees which would be paid into the Highway Trust Fund. In recent years, however, the amount of money Congress has spent out of the general fund has exceeded the dedicated trust funds set aside for highway spending. As Reason columnist and Mercatus Center economist Veronique de Rugy explains, that's due in part to the fact that proceeds from the federal gas tax now go to pay for such non-highway related projects as maintaining sidewalks, funding bike paths, and creating scenic trails. In her latest appearance on Bloomberg TV, de Rugy explains the facts about transportation spending by separating economic myths from economic truths.