The federal gas tax. It needs to be raised. We’ve hammered this point home enough. Our infrastructure needs help, and that help involves money, and that money has to come from somewhere. Politicians know this. But they won’t touch the gas tax with a ten-foot pole. Why not? Because come election time, no one wants to be the candidate responsible for raising the most soundbite-ready and execrated tax on earth. Just think of all the campaign slogans you could come up with — and if you can’t think of any, there are about 200 strategists in Washington who can.
But what we may not realize is that much of the problem lies in public perception of the tax — specifically, what Americans know (or don’t) about how often it gets raised. Here’s a startling fact we came across in a poll done last year by Building America’s Future, Public Opinion Strategies, and Greenberg Quinlan Rosner Research: There is widespread agreement, among people of all demographics and political parties, that the federal gas tax goes up every year (unrelated to state gas taxes, which vary). Even people who closely follow infrastructure/transportation news believe this.[SButtonZ button="digg"]
The survey was done from June 30 through July 2, 2009, and involved 800 adults, with a +3.46% margin of error. And a whopping 60% of the respondents — Republican and Democrat alike — believe the federal gas tax is raised annually. Geographic location didn’t make much of a difference — 61% believed this incorrect statement in the Northeast, 58% in the South, 54% in the Midwest, and 67% in the West.
The truth, of course, is that the federal gas tax has been unchanged at 18.4 cents per gallon since 1993. And, in a colossal error of judgment, the government neglected to index it for inflation. So it’s worth even less now than it was then.
Other results of the poll made this lack of education on the tax even more striking: When asked, “Thinking about your experience with transportation infrastructure in your area today…in general, how would you rate the condition of and your experience with traffic congestion?” 31% answered “very poor.” A majority also answered that traffic congestion was not “a fact of life” — in other words, people believe something can be done about it. A majority (55%) also responded that our country’s infrastructure is outdated, unreliable, and inefficient. On the statement, “Transportation infrastructure funding decisions are based more on politics than need?” a whopping 62% said they strongly agree.
So in other words, we know that our infrastructure needs money, and that our lives could be improved by investment in it. We know that the principle way to raise money for infrastructure is through taxes, and that politicians are making infrastructure decisions based on political gain rather than public good. But what we don’t know is that we’re objecting to the raising of a tax that hasn’t been raised in almost 20 years, and could do wonders for all the troubles we’ve identified. Maybe it’s time for a Gas Tax Education Initiative?
Image courtesy of MCT.
Tags: Taxes, U.S. government
Just a few basic thoughts:
1. What ever the logic was for an 18.4 cent fed. tax 17 years ago should certainly apply today as well. Not having raised it by now is dumb, as long as it is going to infrastucture. At least it is a good job creator.
2. I’m all for user taxes as opposed to taxing income. Wouldn’t most of those who drive larger, less gas effecient vehicles, as well as traveling more miles, be in the mid to upper income level? Great for re-distributing income advocates.
3. I’d have to be concerned about the monitoring & enforcement of a “per mile” tax.
4. Washington is talking about reducing the tax to ease the effects of higher oil. Is this a joke?
As gas prises move toward $4 & $5 per gallon, what difference can a few cent per gallon tax decrease
make?
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[...] An increase in gas taxes across the board. Federal gas taxes have remained at 18.4 cents per gallon since 1993. [...]
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I am all for raising the gas tax IF the politicians use all of it for infrastructure and pass a transportation bill that will let all states move their projects forward.
I can’t believe anybody would be in favor of any kind of tax increase! Where do all the billions go now? Social services? Obama’s never ending vacations? It amazes me that our elected officials would have the GALL to suggest that “big oil” makes “obscene profits” when the government, federal AND state make many times more money on a gallon of gas or diesel than the “big oil” companies ever thought of.
My state makes 25 cents off of each gallon!!!!! And they still can’t seem to fix the roads? Oh PULEASE! The answer ISN’T higher taxes! It’s downsizing the government. Start with social services, foreign aid, grants for stupid stuff and all these “agencies.” Just like for a drug addict the answer isn’t more drugs, for spendaholics the answer isn’t more of MY money!
Sending money to Washington for them to distribute causes a loss of 33% or more in the movement of money. Also the ones appointed to handle this money are political hacks and do very little for the wages paid. Let the states collect the tax and keep their roads up. One less federal bureaucracy is a plus.
Jackie, what amazes me is that you simply cannot draw a distinction between the sources and purposes of the various taxes. Do you actually believe that the revenues generated from the federal motor fuel excise tax go toward social services and public official vacations? Further, do you honestly believe that this administration is taking more vacations than any previous administration? … ugh, I’m sorry, I’ve gotten into the weeds again. The Highway Trust Fund is established for the purpose of maintaining transportation infrastructure. And in case you’ve been hiding under a rock, or living exclusively off information provided by Fox news, I hate to break it to you, but the oil companies are indeed profiting greatly off the production of gasoline and diesel fuel… much more than the piddly amount of tax our government charges. Over the past 19 years, costs to maintain our infrastructure have increased. Labor costs more, materials cost more, it’s just a fact of life. Costs generally go up over the long term. The federal fuel tax hasn’t though. Wake up, or be happy with the crappy roads and failing bridges (but at least you’ll know your oil companies will still be as profitable as ever. At least you’ll have that to help you sleep at night).
I am glad to see Federal gasoline tax has remain at 18.4cents per gal. Lets not forget that on top of the Federal tax the different States tax gasoline to the tune of 15 to 50 cents per gal. The States mostly use it to paid for various funds and for hwy improvements. I would like to see the States reducing their tax.
The major problem with gasoline tax, specially on diesel, is that it has an effect of inflating the price of most products that are trensported by hwy. That additional cost does not add any value to the products but increses the price to the consumer; and that additional cost is non discreminatory, everyone pays for it!
In the 80′s some countries in Europe returned, at the end of the year, the amount of diesel taxes paid by busineses, therefore minimizing the inflationary effect of the tax. I do not think they are still following that policy.