Skip to comments.Raising gas tax for inflation would have netted millions
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.
Marylands 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.
Thats 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'Malleys Blue Ribbon Commission on Transportation Funding has recommended to the states 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 ...
Maryland “Freak State” PING!
More money that the government would use wrongly, anyways!
Raise taxes, what a novel idea. I wonder why the rats didn’t think of it before now?
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.
You are absolutely correct. They’d raise more tax money and spend it on nonsense.
But, but, but, doesn’t raising gas taxes disproportionately hurt those revered single mothers and minorities?
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...
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.
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.)
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.
“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.
“Im 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.
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.
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.
Oh, like public employee pay?
Oops. That's the other side of the ledger.
“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%.
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. ITEP also accepts individual donations.
I knew it!
*Spooky-Dude, George Soros.
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
Actually, the ICC got the go-ahead under Republican Robert Ehrlich.