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Highway Funding Structure: Wal-Mart's Innovations in Logistics
The United States has one of the most complicated road systems in the entire world. These complexities have a number of head aches, but also some serious luxuries that allow American motorists to enjoy traveling in a more streamlined manner than anywhere else on the globe. As more and more cars get on the road, there is ultimately more pollution. As such, companies like Wal-Mart are taking innovative initiatives to help generate greater levels of sustainability in transportation services.
The majority of funding for highway structures throughout the country comes directly from the tax payers. In fact, the research suggests that "federal highway spending is funded mainly through taxes on gasoline and other motor fuels that accrue to the Highway Trust Fund" (Berman, 2010, p 3). This is an enormous cost, and one which carries with it a number of both positives and negatives for those tax payers footing the bill for the funding of transportation services. For one, it is definitely not enjoyable funding massive projects, and often tax payer reservoir funding can be drained by massive contracts that lag on for years. Recently, Congress has...
As such, the burden on tax payers is getting bigger, although they are happy to see much better transportation system being brought to them through their tax funding. Still, much of the money spent by the average tax payers on transportation services are brought back into their community. Here, the research suggests that "about 80% of the money the federal government spends goes to grants to state governments under formulas that allocate funds for such purposes as construction, rehabilitation of existing roads, and safety programs" (Berman, 2010, p 4). As such, the tax payers who fund the majority of projects often see their money spent in their own districts. Federal grants help…
References
Berman, Jeff. (2010). Wal-Mart rolls out ambitious sustainability plan. Logistics Management. Web. http://www.logisticsmgmt.com/article/wal-mart_rolls_out_ambitious_sustainability_plan
Kile, Joseph. (2011). The highway trust fraud and paying for highways. Congressional Budget Office. Web. http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/121xx/doc12173/05-17-highwayfunding.pdf
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