Posted on 07/05/2014 8:12:09 AM PDT by Tolerance Sucks Rocks
The federal Highway Trust Fund is running out of money, and some senators have proposed to fix the problem by raising gas taxes. This, however, is the wrong solution because it treats the symptom, and not the underlying reason for the shortfall. Here are five reasons for not increasing gas taxes.
1. The problem is not a shortage of funds but an excess of spending.
For more than 50 years after Congress created the Highway Trust Fund in 1956 it was able to avoid a shortage of funds by a simple measure: it didn't spend more than was collected in gas taxes. That changed in 2008, when tax revenues declined due to the financial crisis but Congress continued to spend as if the revenues were growing.
Since 2008, Congress has had to replenish the trust fund with $55 billion in general funds. This isn't, however, a subsidy to highways; in the last decade, Congress has diverted well over $55 billion of gas taxes to non-highway projects.
Increasing the gas tax would simply allow Congress to increase spending on often-frivolous projects that do nothing for highway travelers, with no guarantee that it would keep spending below revenues. Thus, in two or three years we would be likely to see the fund once again run out of money.
2. Our highway infrastructure isn't crumbling.
Contrary to popular reports, our highways and bridges are in great shape. Despite the fact that Congress has diverted well over a fifth of gas taxes to non-highway projects, the number of bridges considered "structurally deficient" has declined by more than 50 percent since 1990 and the average smoothness of our roads has increased every year.
(Excerpt) Read more at huffingtonpost.com ...
Is there MORE Than ONE????????????????????
Devil’s advocate here: how does one account for electric car usage? At some point this will be an issue. Personally I am for a libertarian view: abolish the tax an impose tolls. If you use it, pay for it. If you wish to drive on state roads they tax me enough.
That's good to hear. Such sales taxes are just another way to plunder transportation funds for other purposes. At least here, in Maryland, they just outright steal the money; the thievery is more honest than with a sales tax ruse.
The cost of toll booth operation is extremely high and inefficient. More efficient systems require tracking (ipass). Putting tolls on every publoc road would make those problems worse.
For electric cars, there could be a special charge either on the home meter for Leaf type cars, or at recharge stations for CA and Tesla type cars. Nike the sibsidy before you worry about collecting those.
Gas taxes are a proxy for mileage taxation.
We rebuilt our waste water treatment plant ($19.4 M) and the building permit was $100,000 which supposedly covered plan reviews and all the required inspection time. As the public works director I challenged that cost as the funding agencies didn’t allow for permit costs but it did allow for inspections. So we paid the permit up front out of existing sewer reserves and each month the submitted the inspection costs for reimbursement. At the end of the project we only had actual costs of less than $30,000.
That caused the city to re-examine their permit fees!
Thing is, there’s no gas tax on non gas cars. My electric runabout car pays no taxes (worse, state pays me a lot to use it).
THIS came from Huffington post???
That person needs to refresh their resume immediately and have it printed out Monday morning.
They even committed the grievous sin of contradicting dear leader. Every other speech is about “our crumbling roads and bridges” even after the trillions of dollars on “shovel ready” stimulus spending.
It’s not all one sided.
You must remember the true goal of progressives is to get us out of our personal vehicles and into public transpo.
So letting the roads go to he!! is a good approach to accomplish that.
Try this site if you have an aversion to HufPost. It's conservative.
Randal O'Toole doesn't control where his articles get posted.
My apologies.
He forgot to mention that higher taxes on gas has a trickle down effect of causing consumer goods to go up in price. Someone has to pay to get the goods to market and the businesses will pass it along to the consumer.
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