Monday, December 30, 2013
The Future of the Gas Tax: Part I
Congress has not raised the federal gas tax since "the beginning of the Clinton administration," remarked Oregon Congressman Earl Blumenauer in a recent push to raise the federal gas tax. Blumenauer pointed out that, “Today, with inflation and increased fuel efficiency for vehicles, the average motorist is paying about half as much per mile as they did in 1993." Technological improvement and a failure to index the tax rate to inflation have resulted in declining revenues. The drop in revenues coincides with a steady increase in costs (raw materials, labor, maintenance are all impacted by inflation). Under current policy, the gap between revenue and needed expenditures will continue to grow.
The Congressman argues that a gas tax increase enjoys widespread support, "There’s a broad and persuasive coalition that stands ready to support Congress, including the U.S. Chamber of Commerce, National AFL-CIO, the construction and trucking industry, cyclists, professional groups, numerous associations of small and medium businesses, local governments, and transit agencies." These groups recognize that infrastructure plays a vital role in maintaining U.S. economic competitiveness in the 21st century, and they realize our current policies are inadequate to the task.
Wednesday, December 11, 2013
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