As I have written previously, it makes no sense to keep the gas tax fixed at a per-gallon rate when a large part of what the gas tax is meant to fund gets more expensive as gas gets more expensive. USA Today reports on the obvious, the cost of building roads is going up as oil prices rise.
So, gas prices rise, gas-tax revenue is flat (or slightly lower), and the cost of building roads increases. Two possible outcomes from this scenario: neglected maintenance or an increase in the subsidy to drivers.
Time to raise the gas tax.
Monday, June 9, 2008
Why the gas tax must go up
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Here's an idea: Bump the income tax exemption way up to, say, $30,000 for individuals and $50,000 for families. Then cover the lost tax revenue by increasing the gas tax. Here's what this would do: 1) Drive fuel efficiency, public transportation, and alternatives such as electric vehicles. 2) End our dependence on foreign oil and free us from the stranglehold that makes us invade countries, etc. 3) Remove lower and lower-middle income people from the tax rolls, resulting in a natural economic stimulus and a downsized IRS. 4) Reduce greenhouse gasses. 5) Collect tax from the huge underground economy, which doesn't file tax returns. There are probably more reasons which I haven't even thought of.
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