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Raising gas tax for inflation would have netted millions
The Washington Times ^ | December 14, 2011 | David Sherfinski

Posted on 12/14/2011 7:53:22 PM PST by Tolerance Sucks Rocks

RICHMOND — An analysis by a nonprofit tax-policy institute says that Maryland and Virginia could have collected hundreds of millions of dollars per year since their last gas-tax increases if they had raised the tax regularly to account for inflation.

The states, both of which are desperately trying to cobble together more money for transportation, had among the highest totals in the nation of unimposed gas-tax dollars, according to the D.C.-based Institute on Taxation and Economic Policy.

Maryland’s gas tax of 23.5 cents per gallon, in place since 1992, could have generated an additional $421 million per year in the past two decades if it had been tied to inflation, the analysis concluded.

Virginia, with a 17.5 cents per gallon rate since 1986, could have collected an additional $580.3 million per year in 25 years.

“That’s just not a sustainable finance structure,” said Carl Davis, a senior analyst at the Institute and author of the report, “Building a Better Gas Tax.”

Maryland Gov. Martin O'Malley’s Blue Ribbon Commission on Transportation Funding has recommended to the state’s General Assembly a 15-cent increase over three years to the gas tax that would include an index tying it to inflation. Mr. O'Malley, a Democrat, has indicated support for increasing the tax, which could generate nearly $500 million in annual revenue and is expected to be hotly debated during the upcoming General Assembly session.

But Virginia Gov. Bob McDonnell, a Republican, has flatly rejected a gas-tax increase, noting that more fuel-efficient vehicles and more efficient fuel are leading to less gas consumption and causing the revenue stream to dry up. The governor also maintains that a tax increase would be unwise as the state emerges from a national recession.

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections; US: Maryland; US: Virginia
KEYWORDS: gastax; indexing; infrastructure; transportation

1 posted on 12/14/2011 7:53:30 PM PST by Tolerance Sucks Rocks
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To: Abundy; Albion Wilde; AlwaysFree; AnnaSASsyFR; bayliving; BFM; cindy-true-supporter; ...

Maryland “Freak State” PING!


2 posted on 12/14/2011 7:56:08 PM PST by Tolerance Sucks Rocks (Occupy DC General Assembly: We are Marxist tools. WE ARE MARXIST TOOLS!)
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To: Tolerance Sucks Rocks

More money that the government would use wrongly, anyways!


3 posted on 12/14/2011 7:56:42 PM PST by johnthebaptistmoore (If leftist legislation that's already in place really can't be ended by non-leftists, then what?)
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To: Tolerance Sucks Rocks

Raise taxes, what a novel idea. I wonder why the rats didn’t think of it before now?


4 posted on 12/14/2011 7:56:50 PM PST by Graybeard58 (Of course Obama loves his country but I want a President who loves mine.)
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To: Tolerance Sucks Rocks

As you know Tol, there’s not much I support the Dems on, but raising the gas tax to keep up with inflation is one of those things - providing that the money is used for highways, of course.

The alternative is these CRONY deals where the governors get in bed with private companies and essentially give them control of highways, with MONOPOLY protection, as happened here in Texas over the past decade. Just 10 years ago, our gas tax was high enough to keep highway improvements AHEAD of population growth...

...but that was then. Our governor essentially let that tax lapse and, sure enough, our highway are JAMMED.

Now we are SCREWED royally, having to pay tolls to a company that charges over 30 cents per mile, in some parts of North America.

I wish Newt the best.


5 posted on 12/14/2011 8:00:46 PM PST by BobL ("Heartless" and "Inhumane" FReepers for Cain - we've HAD ENOUGH)
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To: johnthebaptistmoore

You are absolutely correct. They’d raise more tax money and spend it on nonsense.


6 posted on 12/14/2011 8:06:07 PM PST by muawiyah
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To: Tolerance Sucks Rocks

But, but, but, doesn’t raising gas taxes disproportionately hurt those revered single mothers and minorities?


7 posted on 12/14/2011 8:07:24 PM PST by Rembrandt (.. AND the donkey you rode in on.)
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To: Tolerance Sucks Rocks

I thought we allowed northern Virginia cities and counties to charge extra taxes so they can build all the roads they want with their own money.

I guess ‘their own money’ is the problem...


8 posted on 12/14/2011 8:09:57 PM PST by mrsmith (Start electing a 'Tea Party' Majority Leader in 2012 now!)
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To: BobL

It certainly would have helped in Maryland, but the main problem there is that so much transportation revenue in this state is spent on transit, not roads, to the tune of about 49 percent. Just the Dems rewarding their union-goony transit buddies, I guess.


9 posted on 12/14/2011 8:12:19 PM PST by Tolerance Sucks Rocks (Occupy DC General Assembly: We are Marxist tools. WE ARE MARXIST TOOLS!)
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To: Rembrandt

I’m guessing the Dem thinking is that the revered single mothers and minorities take the bus. (That’s not always true, of course, but I’m just taking a stab here.)


10 posted on 12/14/2011 8:14:38 PM PST by Tolerance Sucks Rocks (Occupy DC General Assembly: We are Marxist tools. WE ARE MARXIST TOOLS!)
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To: Tolerance Sucks Rocks

Raise the gas tax only if the money is fenced for road-construction. In Texas it has been raised to fund football in the public schools. I jest—a little.


11 posted on 12/14/2011 8:14:53 PM PST by RobbyS
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To: Tolerance Sucks Rocks
talk about Highway ROBBERY...
12 posted on 12/14/2011 8:23:03 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Tolerance Sucks Rocks

“It certainly would have helped in Maryland, but the main problem there is that so much transportation revenue in this state is spent on transit, not roads, to the tune of about 49 percent. Just the Dems rewarding their union-goony transit buddies, I guess.”

That bites, but even at 49%, you still come out way ahead, versus having some monopoly charging you 30 cents per mile to drive. But, obviously, you have to fix the problem that you mention also.


13 posted on 12/14/2011 8:25:42 PM PST by BobL ("Heartless" and "Inhumane" FReepers for Cain - we've HAD ENOUGH)
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To: Tolerance Sucks Rocks

“I’m guessing the Dem thinking is...”

Can’t you just picture that bus with spinners and a magenta paint job, oversize tires, maybe a convertible and, of course, 40 sets of speakers all with maxed out bass.

Hey, don’t look at me like I’m strange, Dude...I’ll cut you.


14 posted on 12/14/2011 8:49:40 PM PST by Rembrandt (.. AND the donkey you rode in on.)
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To: Tolerance Sucks Rocks
"It certainly would have helped in Maryland, but the main problem there is that so much transportation revenue in this state is spent on transit, not roads, to the tune of about 49 percent. Just the Dems rewarding their union-goony transit buddies, I guess."

And now Maryland is charging a ridiculous fee to use the newly opened Inter County Connector road - a road built with taxpayer money. This new highway is supposed to bypass the Capital Beltway (I495) and relieve some of the congestion on that road. I bet the ICC stays empty and barely used. Another Democrat Party screwing of the people of Maryland.

15 posted on 12/14/2011 10:31:02 PM PST by StormEye
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To: Tolerance Sucks Rocks

What a fallacious argument, firstly, the taxes aren’t finite, they keep flowing with every purchase. Yet few new roads are built. It’s all for maintenance, maybe a little widening. It’s not like they need a whole new capital outlay every year.

Also, the higher gas prices are, the less everyone drives.

And, the less transportation, the less economic activity, ergo all tax revenues tend to nosedive.

“Reasoning” such as the above article makes me weary.


16 posted on 12/14/2011 10:34:03 PM PST by Persevero (Homeschooling for Excellence since 1992)
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To: Tolerance Sucks Rocks
Maryland’s gas tax of 23.5 cents per gallon, in place since 1992, could have generated an additional $421 million per year in the past two decades if it had been tied to inflation, the analysis concluded.

Oh, like public employee pay?

Oops. That's the other side of the ledger.

17 posted on 12/14/2011 10:36:06 PM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: johnthebaptistmoore

“More money that the government would use wrongly, anyways!”

If the money went 100% to well-managed maintenance and improvement, I wouldn’t have a problem with it. Chances of that actually happening, as opposed for funding of public bicycles, endless studies for light rail, bus subsidies, “greenspaces”, and so on: approximately 0.0000000000%.


18 posted on 12/14/2011 11:51:05 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
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To: Tolerance Sucks Rocks
Raising gas tax for inflation would have netted millions

Government entities at all levels collect more money on the price per gallon of fuels than the providers of the fuels.
Who do the moron "occupy everything" rail against? Why the producers of course.
The greatest ripoff by a corrupt government are hidden taxes, many over a hundred years old, and light years away from being used for their intended purpose.

I make a blind bet that this "the D.C.-based Institute on Taxation and Economic Policy" (ITEP)is a left wing group whose sole purpose is finding ways of separating the working American Taxpayer from his wallet.The rising American Parasite Class.

Check them out!

Funders--- ITEP lists a number of foundations among its funders, including the Annie E. Casey Foundation, the Ford Foundation, the Open Society Institute*, and the New York Community Trust.[6] ITEP also accepts individual donations.

I knew it!
*Spooky-Dude, George Soros.

19 posted on 12/15/2011 12:08:08 AM PST by Publius6961 (My world was lovely, until it was taken over by parasites.)
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To: Tolerance Sucks Rocks

Thats funny in Connecticut our Gas taxes are double what those are and our transportation around here sucks,and the newly installed Democrat controlled Government just raised taxes by Billions to take care of all those transportation problems we have been paying through the nose for in our Gas tax. So take your Bull Crap and go somewhere else


20 posted on 12/15/2011 4:01:12 AM PST by ballplayer
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To: StormEye

Actually, the ICC got the go-ahead under Republican Robert Ehrlich.


21 posted on 12/15/2011 3:59:08 PM PST by Tolerance Sucks Rocks (Occupy DC General Assembly: We are Marxist tools. WE ARE MARXIST TOOLS!)
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