See Ya Later, Gas Tax

posted by Christopher Swope

So President Bush now wants to cut gasoline use by 20 percent. What's not to love about that?

Here's one thing, if you're in the state and local government sector. Revenues from gas taxes, which are levied by the gallon, bring in $35 billion a year for transportation projects. Lop off 20 percent, and you're down $7 billion.

States are already stretched thin on funds for transportation -- look no further than the current craze for selling off toll roads and turnpikes. Now the pinch seems likely to grow steadily, if gradually, worse.

What this points out is the great irony surrounding one of our worthiest environmental goals. Hybrid cars, alternative fuels and greater fuel economy are good things. But they also undermine the way we currently finance transportation infrastructure in this country. Add to that the reluctance of state legislators to allow gas taxes to keep pace with inflation, and you have a tax that is no longer  viable for the modern world of politics and environmental policy.

States need to adapt. One interesting idea comes from Oregon, which is testing a way to use technology to levy taxes by the mile rather than by the gallon. Other states, such as Texas, see partnerships with the private sector as the way to get new roads built. Also, expect to see a lot more toll roads across the country, whether they're run by the states or by private vendors.

It's an obvious point, but one that American taxpayers somehow can't seem to remember: somebody has to pay for the roads they drive on.

Comments

[Brian Gongol]

Per-mile taxes are the way of the future, but Oregon's method of applying them seems too intrusive on personal liberty. Much better would be a simple plan to take annual odometer readings to achieve the same result.

[Dick Friedman]

Unless I'm being really dense, the gas tax IS a tax on use. Don't drive, don't pay tax on gallons. Drive a lot, use more gallons, pay more tax.

If the politicians are too gutless to increase the gas tax to pay for the roads, then they should legislate (during stable times, when no one will notice) that gas taxes should be indexed to the cost of living.

It's simple, invisible, and the next generation of politicians can say they had nothing to do with it.

[geoffludt]

Though your post is a bit dated, I thought I'd supply a relevant link to a post at rightOregon.org which contains more details regarding the "Road User Fee" Pilot Program Oregon is testing as well as objections to "Congestion/Rush Hour Pricing" and "subsidies to fuel-efficient vehicle" nuances being considered alongside the program.

With kind regards,