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Federal Commission Recommends Raising Gas Tax 50 Percent Posted by Andy Kondrat on January 5, 2009 at 1:50 pm

In today’s “another reason you probably don’t want to rush out and buy an SUV” story, we learn that a(nother) federal commission is calling for higher fuel taxes to help fund our failing roadways. (UPDATE: Jon definitely already covered this story here. Check out his take on in for some good commentary.)

The Philadelphia Inquirer reports that the congressionally-created National Commission on Surface Transportation has suggested that the current taxes, 18.4 cents a gallon for gas and 24.4 cents a gallon for diesel, aren’t high enough to maintain upkeep on roads, highways, and bridges. Part of the problem is that motorists are driving less and purchasing less fuel, so the difference has to made up somehow.

In a report expected in late January, commission members say they will urge Congress to raise the gas tax 10 cents a gallon and the diesel-fuel tax 12 to 15 cents a gallon. At the same time, the commission will recommend tying fuel-tax rates to inflation. It also will recommend that states raise their fuel taxes and make greater use of toll roads and fees for rush-hour driving.

Of course, we’ll see how quickly those elected into office embrace this idea, because this might be a really good way to get unelected. The Inquirer notes that “a gas-tax increase was one of the reasons they lost control of the House and Senate in the 1994 elections,” and trying it again could yield the same results.

As I alluded to above, this is not the first federal panel to recommend a gas tax increase. Just a year ago, another commission argued the same, using silly things like numbers, and data.

A study by the Transportation Research Board of the National Academies estimated that the annual gap between revenues and the investment needed to improve highway and transit systems was $105 billion in 2007, and that it would increase to $134 billion in 2017 under current trends. Projected shortfalls in revenue led the National Surface Transportation Policy and Revenue Study Commission, in a report last January, to urge an increase of as much as 40 cents a gallon in the gas tax, phased in over five years.

I don’t know if this will sway you any, but the guys at Car Talk also think this is a good idea. So, there’s that. And, of course, our gas tax is way lower than, say, most European countries.

In case the gas tax does go up, you can be ready and takepart to learn how to stretch your gas dollar.


CATEGORIES:  Environment


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