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GAS TAX is needed

gas-taxPersonally, I believe in the idiom—you get what you pay for—so cutting taxes too much has never made sense to me. Most people abhor taxes, but taxes are necessary to run the country and provide the services that we depend on as a collective.

Our founding fathers (or the drafters of the United States Constitution) understood the utility of being able to tax and regulate interstate commerce. During the Articles of Confederation (AC), the United States held a lot of debt, because under the AC, it was hard to raise revenue and money.

Recently, there was a request to raise the federal gas tax by 10-cents-a-gallon. The current gas tax has remained at “18.4 cents since 1993,” and “with motorists driving less and buying less fuel, the current 18.4 cents a gallon gas tax and 24.4 cents a gallon diesel tax fail to raise enough to keep pace with the cost of road, bridge and transit programs.”

I believe the gas tax is needed.  In America, we have become too complacent and selfish regarding our responsibilities as American citizens.  As a result, it is time for a gas tax, and I believe the arguments favoring a gas tax are stronger than not doing so. From WGAL, PA:

Members of the National Commission on Surface Transportation Infrastructure Financing are expected to release a report later this month. Among other findings, the group determined that more drivers have changed their habits and are driving less. That means the amount of money available from the federal gas tax to make road and bridge repairs is shrinking.

The commission is expected to urge Congress to raise the gas tax by 10 cents per gallon and the diesel tax by 12 to 15 cents per gallon.

Furthermore, it seems that truck and SUV sales are increasing as gas prices remain low, so “Big is back: As pump prices plunge, SUV sales surge.” From the Daily Press, VA:

Trucks and sport utility vehicles will outsell cars for the first time since February, according to a December report by Edmunds.com, which tracks industry statistics.

“Despite all the public discussion of fuel efficiency, SUVs and trucks are the industry’s biggest sellers right now as a remarkable number of buyers seem to be compelled by three factors: great deals, low gas prices and winter weather,” said Michelle Krebs of AutoObserver.com, a division of Edmunds.com, in a prepared statement

Some argue that political will does not exist for a gas tax—especially during a recession—but it is the job of our political leaders to educate the public regarding the necessities of a gas tax. Furthermore, it is the responsibility of politicians not to politicize the issue, but do what’s right for the country. From the Annapolis Capital:

Gas tax hikes are never politically popular. And Congress is not crazy enough to impose one in the middle of a deep recession, when anything likely to discourage economic activity must be avoided like the plague.

If the gas tax does eventually have to go up – a big if, as far as we’re concerned – we like the idea that columnist Charles Krauthammer argued for in the Jan. 5 issue of the Weekly Standard: A “net-zero” gas tax that would be compensated for with an equivalent cut in the federal payroll tax. This would ensure the economic and environmental benefits of reduced use of gasoline while providing a quick economic stimulus (as people would be unlikely to plough all the extra money from the payroll tax cut back into gas purchases).

The country will eventually have to find ways to put more money into highway infrastructure. But for now, the American taxpayer has all the pain he can handle – and his forbearance in using his car shouldn’t be rewarded with a gas tax increase.

During the 2008 U.S. presidential election, John McCain and Hillary Clinton both touted gas tax holidays, but Barack Obama did not. However, the gas tax holiday was widely viewed as irresponsible and bad policy, especially by economists. Currently, some states are looking to increase their gas tax in order to raise badly needed funds, but Oregon is considering a mileage tax instead of a gas tax. From the Los Angeles Times, CA:

For years, Oregon has been diligent about reducing the state’s dependence on fossil fuels, but its environmental consciousness has come at a stunning price — gas tax revenue is down $4.8 million a year compared with 2006.

That drop, caused by lower fuel consumption and a slowing economy, has prompted Oregon to consider a new way to pay for road repairs: Democratic Gov. Theodore R. Kulongoski’s upcoming budget calls for a highway tax based on mileage, not gasoline purchases.

A state task force will look at equipping every new vehicle in Oregon with a Global Positioning System to record every mile driven and where. Motorists would pay at the gas pump based on how much they drove, no matter how fuel-frugal their vehicle.
The plan still requires legislative endorsement and the full details could take several years to work out, but state analysts said the governor’s endorsement is a crucial step toward solving what has become a problem in many states: dependence on a gasoline tax.

.       .       .

While Oregon appears to be out in front in looking at a mileage fee, several other states, including Ohio, Pennsylvania, Colorado, Florida, Rhode Island, Minnesota and Texas, have also expressed an interest in phasing out the gas tax in favor of charging motorists for how much they drive.

In Oregon, some drivers protest that the plan would discriminate against rural residents who may have to drive several miles just to get to the grocery store; create potential inequities compared with drivers from out of state; and raise privacy concerns, with Big Brother keeping a satellite watch over where everyone is driving

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