Posts Tagged ‘gas tax’

A Republican Senator Thinks the Gas Tax Should Be Raised, and You Should Too

Monday, August 9th, 2010

gas-taxSen. George Voinovich of Ohio is retiring. And in his last days, he’s letting it all out. Including his strong view that the federal gas tax needs to be raised (just a reminder: it hasn’t been raised in nearly two decades). In a letter to members of President Obama’s debt commission, Voinovich laid out his argument:

Fuel taxes today fund the vast majority of the federal government’s investment in infrastructure projects… Due to dwindling fuel tax receipts, Congress has had to transfer billions of dollars from the General Fund to the Highway Trust Fund to maintain our current level of federal involvement….

The lack of investment in our crumbling bridge, highway, and transit systems is a missed opportunity for the creation of thousands of well paying jobs and long term economic growth for our Nation.

At an Ohio conference last month, Voinovich said, “I believe Americans are willing to pay a higher gas tax to create jobs, improve our infrastructure and better our climate. And many of my conservative colleagues do not consider that gas tax as a tax, but as a user fee.”

So if Democrats are supposedly in favor of raising the tax, and many Republicans aren’t opposed to it, then what’s the holdup? (Don’t answer that question.)

RELATED:
Is the Low Gas Tax Costing You More Money on Car Repairs?
Should We Scrap the Gas Tax and Simply Have More Tolls?
Finding Alternatives to the Gas Tax: The Pundits Discuss

Finding Alternatives to the Gas Tax: The Pundits Discuss

Thursday, July 29th, 2010

Just what are we going to do about the seeming-immovable gas tax and the increasingly-bankrupt Highway Trust Fund? Infrastructurist editor Melissa Lafsky hit the Fox Business studio to make the case for finding creative solutions, including but not limited to increasing tolls.

The Hidden (And Massive) Costs of Letting Our Roads Deteriorate

Wednesday, July 21st, 2010

pavement-deterior1

We’ve argued that a compelling reason to raise the gas tax (which is still absurdly low) is that it’s actually costing drivers money to keep it so low — more specifically, the damage being done to roads from inadequate maintenance (a result of state and federal governments not having any tax-generated money to fix the roads) is costing drivers more than actually paying a slightly higher tax for gas.

Well, as it turns out, those crummy roads aren’t just forcing more cash out of our pocket books for repairs — they’re also compounding the costs of fixing them. As the above graph, known as the “pavement curve,” indicates, the cost to fix pavement increases dramatically when initial repairs and maintenance are delayed beyond a reasonable time frame. A recent study by the New Hampshire DOT found that if you apply a treatment to preserve pavement within the first 15 years, the treatment will generally restore the pavement’s condition. But if this maintenance is delayed for another 3 years, the cost of rehabilitating the roads will be 4 to 5 times more than the cost of the original treatment.

So basically, our low gas taxes are costing everyone money on all sides: The federal and state governments suffer from lack of tax collected and exponentially increasing expenses of fixing roads, while the taxpayers suffer from cruddy roads that damage their cars as well as increasingly-strained government coffers that have to spend more just to keep roads functional, and therefore have even less to spend on things like budget deficits and other services. Not to mention all the negative externalities of keeping gas artificially cheap.

So D.C., still not convinced?

The Morning Dig: How Infrastructure Can Grow America’s Economy

Wednesday, July 14th, 2010

Visit msnbc.com for breaking news, world news, and news about the economy

• One guest on the Dylan Ratigan Show on MSNBC suggests using infrastructure to get the U.S. economy back on its feet. The video is above.

• The city of Chicago may be moving toward a congestion pricing policy for cars. (Tribune)

• Some states are seeing their economies grow with automobile battery manufacturing plants. (NYT)

• Brookings expert Chris Leinberger takes on Joel Kotkin’s pro-suburbs position and argues for walkable spaces in cities. (Brookings)

• BP has not learned any lessons from the Exxon Valdez oil spill disaster, a Washington Post investigation finds. (WashPost)

• An article finds that the gas tax is at one of the lowest points in U.S. history, while an editorial argues for raising it (a position we heartily agree with). (USAToday) (WashPost)

Divide and Conquer: Should States Impose Region-Based Gas Taxes?

Monday, June 28th, 2010

atlanta-trafficSo is our best chance of raising the gas tax on a state level (which we all know needs to be done) to carve up each state, and let the smaller regions decide on the tax for themselves? Officials in Georgia are putting a similar idea to the test.

The Economist reports that Georgia, a state that houses drastic urban diversity (there’s Atlanta, home of Dante-esque traffic, and then a smorgasbord of tiny rural towns surrounding it) is dividing up and letting regions set gas taxes based on road use. Their reasons for doing so are logical — while Georgia was the third fastest-growing state between 2000 and 2006,  it’s infrastructure spending is 49th out of 50 in infrastructure spending per capita, while its gas tax is the second-lowest in the country.  And, as with most states that have a staunch urban-rural divide, the legislature has been bitterly divided over which infrastructure projects to spend money on — and how to pay for them.

As such, Georgia governor Sonny Perdue found himself looking for a compromise, which he eventually signed into a transportation bill. The Economist describes the bill as follows:

[It] divides Georgia into 12 regions, and gives each the power to decide on its own transport projects. Voters in each region will decide by referendum whether to approve a one-cent increase in the sales-tax to pay for those regional projects. Atlanta stands to see as much as $790m through the new tax.

The bill will also help MARTA, Atlanta’s woefully inadequate urban-rail system. It is the largest in the country to receive no state funding; it relies instead on passenger revenue and a 1% sales tax in the two counties it serves. It has long been required to spend half its sales-tax revenue on capital projects, which has starved its operating budget. The bill removes that requirement for the next three years. That will not make MARTA any more effective, but it may stave off some of the service cuts it faces.

While it’s not a boon for public transit, it is a start — and a move that makes a lot of sense when you consider that more and more people are moving to urban areas, necessitating more infrastructure investment in those high-population regions. Meanwhile, the political structure can stonewall urban regions from getting the funding they need, by voting against state-wide measures — like tax raises. So why not allow high-population regions of a state to legislate transportation as they see fit?

Granted, Atlanta residents may have an objection — the urban areas of a state are key economic drivers in the state’s GDP, and provide economic benefits for every resident of the state whether or not they pay Atlanta’s higher gas tax. But the alternative is to keep letting Atlanta lag behind in infrastructure development, and funding.

UPDATE: This post has been appended. We originally stated that the new bill would allow the state subdivisions to raise their gas tax if they saw fit. It does not. Still, would it be so bad if high-traffic urban areas were allowed to collect a higher gas tax if they so chose?

Why We Should Raise the Gas Tax: The Pundits Discuss

Friday, May 28th, 2010

Here’s Infrastructurist editor Melissa Lafsky on Fox Business explaining to Brian Sullivan exactly why it would save drivers money to simply raise the gas tax rather than keep driving on unrepaired, pothole-ridden, transmission-killing roads.

Is the Low Gas Tax Costing You More Money on Car Repairs?

Wednesday, May 26th, 2010

gas-taxWe keep gas taxes low in this country - heck, the federal gas tax hasn’t been raised a cent since 1993 (which, when you consider inflation, means that it’s worth practically nothing — which is why the federal Highway Trust Fund is insolvent). But despite the fact that raising the tax is, well, akin to political suicide, are states’ efforts to keep the tax low actually costing drivers more in the long run?

Karl Sieg, vice president of the American Society of Civil Engineers’ Pittsburgh section, certainly thinks so, and he’s basing this view on the following data: According to multiple estimates, the cost of damage to vehicles from rough roads is around $300 to $400 per year, with some measures going as high as $750. (Remember all those hidden costs of driving? Here they are.)

Meanwhile, Sieg points out, a 25-cent-per-gallon increase in Pennsylvania’s gas tax — which was raised in 1997 to its current 32.3 cents, and is eaten away by the fact that construction costs have risen 55% since then — would result in more than $1.5 billion of revenue. And “for a driver who goes 15,000 miles a year at 25 miles per gallon, the annual cost [of the tax increase] would be $150.”

So yeah, that math is pretty convincing. Now let’s try getting the message across to voters. Starting now.

RELATED: What Does $600 Million Get You? In PA, a D- Roads and Transit System

Gas Tax Ignorance Revisited: Are Vehicle Mileage Fees the Answer?

Monday, January 25th, 2010

gas-taxMany people have been surprised to learn that the majority of Americans have no clue that the federal gas tax has not been raised a single cent since 1993. But the news didn’t come as a surprise to everyone: Trey Baker, a researcher at the Texas Transportation Institute, has been collecting data on the issue for some time. Specifically, he and his colleagues have been studying vehicle mileage fees and other user-based fees as an alternative to a flat fuel tax. On the subject, he writes via email:

I found the progression of the discussion in the comments section following the “How Often is the Gas Tax Raised?” article to be extremely interesting. Our public assessment research into vehicle mileage fees (VMT fees, mileage fees, road user charges, etc.) as well as the research of the Minnesota DOT has found that this lack of understanding about the fuel tax is a major barrier in getting people to talk about real reform to the nation’s transportation funding and financing system. Whenever we have gotten people to really look at:

1. How the tax is actually assessed;
2. The tax’s history with regards to increases;
3. Trends in vehicle fuel efficiency and the long term implications of these trends;

We find that people are willing to at least move beyond the old “Alaskan Bridge-to-Nowhere” discussion, which is based on the need to spend existing revenue sources more efficiently, and at least consider the need for some alternative revenue mechanism.

It seems that this topic is getting more and more coverage from transportation related media, and as a fan of the Infrastructurist I wanted to call your attention to a Web site that we here at the Texas Transportation Institute have been putting together that is aimed at collecting research on the topic of vehicle mileage fees. The site started out as a site for the first ever symposium on mileage based user fees, but we are attempting (pending some additional funding) to turn it into a one-stop-shop for all vehicle mileage fee related research.

Are user-based fees and road-use charges a better alternative? Certainly they could work to incentivizing less fuel use and greater efficiency, and could provide a solution to funding all the long-term transportation projects that the U.S. desperately needs. For a thorough discussion of the topic, check out Baker and co-author Ginger Goodin’s full summary here.

Image courtesy of MCT.

The Daily Dig: Critter Crossing Edition

Tuesday, December 1st, 2009

bilde2• Secretary LaHood floated an increase in the gas tax as a way to pay for a robust transportation bill. The idea was taboo under Bush, but now LaHood wants Congress to consider increasing it gradually over time. (Star-Telegram)

• An international study claims that “mass active travel,” i.e. walking and cycling, deserves priority over driving because it’s safer, healthier, and doesn’t ruin our air. Sure, except for the small matter that it doesn’t get you anywhere fast.  (Montreal Gazette)

• It’s not just lobbyists trying to cash in on HSR–several foreign manufacturers want to build factories in the U.S. This might be a nationalist issue if we were capable of building our own trains. (NYTimes)

• Health risks associated with living near small airports haven’t been studied much, but maybe they should be: A report found high concentrations of organic carbon and sooty black carbon more than 2,000 feet downwind of a smaller airport. (NYTimes)

• London’s Tube is a “dog-eat-dog” world, where even pregnant women don’t get right-of-way. “Shocking overcrowding” brings out the “worst part” in people, and a psychologist says it’s “not advisable” to ride the most crowded trains. (Bloomberg)

• And in North Carolina, the transportation department will spend millions to add highway underpasses so animals–especially black bears–can cross the road. Wonder what the signs will look like! (StarNews - pic via)