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Fuel tax hikes inevitable
Current taxes on gasoline and diesel unable to pay the cost of roads and bridges
Tuesday, Jan. 6, 2009 | 2:05 a.m.
Two congressionally appointed study groups have reached the same conclusion in regard to sustaining our nation’s highways and bridges: Federal fuel taxes must be raised.
Last week the 15-member National Commission on Surface Transportation Infrastructure Financing called for increasing the federal gasoline tax by 10 cents a gallon and the federal diesel tax by 12 cents to 15 cents a gallon.
Neither the 18.4-cents-a-gallon federal tax on gasoline nor the 24.4-cents- a-gallon federal tax on diesel has been increased since 1993.
A year ago another study group, the National Surface Transportation Policy and Revenue Study Commission, recommended raising federal fuel taxes as much as 40 cents a gallon over a five-year period.
A Las Vegas transportation consultant, Tom Skancke, served on that commission. He told the Las Vegas Sun at the time why he believed changes are needed.
“The way we fund highways ... is not good for the 21st century,” Skancke said. “The program needs to be fixed because it’s underfunded. The revenue stream does not ... keep up with the transportation demands of this country.”
Nevada alone has a $5 billion-plus deficit in transportation funding through 2015.
It has been known for several years that the Federal Highway Trust Fund, which receives the revenue from the fuel taxes and dedicates it to highway and bridge repairs, will be broke by 2010 unless other revenue is found.
That deadline has been accelerated by the national economic meltdown. Americans drove 100 billion fewer miles from November 2007 to October 2008 compared with the same period the year before, according to the Federal Highway Administration.
And the trend toward buying less gas — resulting in less tax being collected — will continue as people gravitate to more fuel-efficient vehicles.
Our view is that fuel tax increases are inevitable. Unless, that is, drivers want factory-installed global positioning devices in their cars, tracking their every move so the government can tax them according to the miles they drive — an idea actually being discussed.
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Uddeboda, we don't drive a lot in Vegas anyway. Have you been here? This place is pretty small compared to most major metros around the country, and the commutes tend to be shorter than in other places.
Additionally, Las Vegas is newish. Therefore much of our infrastructure is newish. We can't relate to gas taxes for repairing infrastructure when we don't have any real issues there.
Nonetheless, somebody here made the comment yesterday that taxing gas to pay for roads was "unfair". Now, I'm certainly no genius when it comes to civil and governmental theory, but, I'm pretty sure that would be exactly why you would tax gas in the first place.
Maybe some politicians are getting squirmish that with the gas at a more affordable price the middle class will once again begin to exist - heaven forbid they can't rid the planet of us pesky middle-classers - it's still the old - rich or poor mindset and the repugnacants won't be happy until all the middle class is eradicated - once and for all.
Sun for a tax increase ------ big surprise there.
Without a state income tax in Nevada, there are not a lot of fair & equitable ways to raise revenue. Certainly none that 2 or more people will agree on. Sales tax is already too high. Gas tax is a reasonable compromise if it's modest.
The story is talking about Federal gas tax.
One can raise the state gas tax but they can only use it for roads. That is a Nevada Constitutional restriction.
A state income on individual or corporations would also require a long process to admend the state's constitution, too. I believe both are bad ideas for it is one of the few reasons why companies and people have any desire to move here.
I think raising taxes on businesses are a bad idea. It discourages economic activity and discourages job growth.
I think they should raise the sale tax an half-a-cent and put a sunset provision that it expires in 2 years.
Nance; I stand corrected.
And upon further reflection, I find myself in the unusual position of not being terribly disagreeable with your post. Miracles never cease.