Talk of a New Gas Tax Begins on National and State Levels

Gas prices have plummeted in the past five months to lows no one — expert nor everyday driver — thought they would see again. This has led to talk of a new or heavily increased gas tax by both federal and several state governments. The heaviest hitter now joining the long-ignored call for a higher fuel tax is The New York Times editorial page.

With states trying to plug holes in their budgets — currently large enough to drive an SUV through — raising the gas tax is seen as a partial solution that could help push the U.S. toward a more realistic energy future.

California and Michigan both have proposals moving through their state legislatures to raise the gas tax. Michigan wants to replace a 19 cent per gallon gas tax and a 15 cent diesel tax with an 18% tax on the wholesale prices of both fuels. Currently, California, Illinois and Massachusetts have the highest gas taxes.

One thing's for sure: Historic summer gas prices, followed by an economic crisis, have combined to change America's driving habits, maybe for good. Transportation and road infrastructure repairs are mostly paid for by taxing fuel. The gap in tax revenue caused by drivers leaving the road will have to be filled somehow.

Comments

[J]

Great idea from the stupids running the government again?

Raising tax in economic downturn was never the good idea from history.

[Tony]

One day NY governor will wake up to a noisy croud waving AKs and Glocks in the air. These people want wore of burned out cities. They'll get it.
They forgot that tough times are the times when all the terrorists and unhappy people will come out and do something bad.
I am not supporting the chaos but I think that our governments don't get that they can't solve their problem by taxing, taxing, taxing. So we go back to were we started, fighting taxation without representation, because I don't think that these people represent our views.

[Happymantis]

Wow... overreacting much?

I can't say that I would wholeheartedly endorse a gas tax, but seriously, with our nation debt as high as it is... its about time we started to do what was fiscally sound. Raising taxes will certainly stem the tide ebbing away from fuel efficient vehicles, and it will help plug a deficit in our government budgets.

[Watchdog]

Fiscally sound policy is to stop spending more money than you have...finding new streams of revenue to support out of control spending is not the solution.

[Tony]

Happymantis,
I understand need for taxes. I don't understand how our money are spent. For example, why do we have policies that if a township or other gov. identity has not spent their allowence for the given year, they are to spend it to repave perfectly good roads because they are afraid that if they don't spend this money they would get less for the next year. These policies are doomed from the begining because the infrastructure grows while jobs shrink. Or lets say good jobs shrink.

[cody]

i don't think raising the fuel tax is such a bad idea. not only would it keep people in the market for fuel efficient vehicles (you can blame the govt for the tax instead of the big3 for building the suvs), but it would also provide more money to repair the road infrastructure (all the structurally deficient bridges for example).

[Cujo]

Happymantis,
Who's the "we" in your statement, "...its about time we started to do what was fiscally sound."

There is nothing stopping you from sending in additional tax dollars to the IRS. Why not man-up and send an extra check in or are you more talk than action?

It's always the low-income earners who say they want to pay more in taxes.

[J]

I do understand the national debt is high, but who racked up all those debts? The exact bunch of incompetent people running the government.