Two senators eye gas tax hike (.25) to pay for highways and bridges

[babylonsister]

Two senators eye gas tax hike to pay for highways and bridges
By Alexander Bolton - 11/08/10 06:31 PM ET


A bipartisan pair of senators has urged President Obama’s debt commission to consider raising the gas tax to pay for infrastructure projects.

Sens. Tom Carper (D-Del.) and George Voinovich (R-Ohio) have written to the chairmen of the National Commission on Fiscal Responsibility and Reform advocating for a 25-cent per gallon tax increase.

“We suggest that the commission include an increase in the federal tax on gasoline and diesel as part of your report to the president,” they wrote. “We suggest that the taxes be increased by one cent per month for 25 months — a total of 25 cents over a three-year period.”

The lawmakers suggest that 10 cents of the tax increase should go to deficit reduction and 15 cents should go to funding transportation infrastructure improvements.

It is one of many tax increases Congress is likely to consider in the months ahead as it wrestles with finding ways to reduce the nation’s $1.5 trillion budget deficit.

The proposal, however, seems likely to face staunch opposition from Republicans, many of whom ran on a firm anti-tax increase pledge. It is notable that Voinvoich, the GOP voice on the letter, is retiring at the end of this Congress.

more...

http://thehill.com/blogs/on-the-money/domestic-taxes/128271-two-senators-eye-gas-tax-hike-to-pay-for-highways-and-bridges-

[GSLevel9]

1. doesn't stand a chance... nt

[bullwinkle428]

2. Tea-bagger heads explodin' everywhere!

[Catshrink]

5. I want my country back!

:cry:

[Kaleva]

3. It should be raised about .75 cents a gallon

That's about how much it would take just to adequately maintain our highway system.

[hlthe2b]

6. +1

[Angry Dragon]

8. Sure ..... let's have the bottom pay more taxes

[SammyWinstonJack]

11. It's the American way!

:puke:

[Kaleva]

16. The so-called bottom paid for the highway system in the first place

And they did it by paying more taxes.

[Angry Dragon]

22. I am having trouble following your reasoning

[Kaleva]

23. The funds to construct the interstate highway system

were collected by using a regressive tax system.

[Angry Dragon]

24. And that is a good thing??

[Kaleva]

27. It wouldn't have been built otherwise.

The income tax rate for the wealthiest Americans during the Eisenhower Administration was about 94%. I don't see how the revenue would have been generated to fund the construction of the interstate highway system other then using a regressive tax system.

[Dont_Bogart_the_Pretzel]

38. Soo... why are there are Toll roads then?

[taterguy]

12. What's your source for that figure?

I'm genuinely curious.

[Kaleva]

13. Earlier this year....

I did some research on this. First, I looked up how much revenue the current tax produces and then looked up various sites that discussed how much money was needed to adequately maintain our highway system. I then calculated how much the tax ought to be to produce the revenue needed.

Another post in this thread stated we use about 180 billion gallons of gas per year. A .75 cent tax would generate about 135 billion in revenue which is pretty close to what is needed to maintain our highway system according to sources I've read.

I can't say for sure that my figure is accurate and there is also the fact that the higher the cost of gas, the less is purchased and thus the less tax revenue is produced.

"According to data from the U.S. Department of Transportation's 2006 "Report to Congress on the Conditions and Performance of the Nation's Highways, Bridges and Transit," all levels of government should currently be investing about $120 billion per year in highway improvements just to maintain current physical and performance conditions on the nation's highways and bridges. This would grow to about $140 billion by 2015 if highway construction costs grow at the same rate as the overall inflation rate."

http://www.artba.org/about/faqs-transportation--general-public/faqs/#15

[taterguy]

28. You researched something before posting about it?

How reasonable.

:toast:

[Fla_Democrat]

29. I wonder how many people will catch that

my guess is, not many.



:smoke:

[Dont_Bogart_the_Pretzel]

37. WHY SHOULD WE PAY MORE AT THE PUMP???

When ExxonMobil making huge profits?

http://money.cnn.com/2010/07/29/news/companies/Exxon/index.htm
NEW YORK (CNNMoney.com) -- Exxon Mobil Corp. reported quarterly earnings Thursday that easily beat analysts' expectations on higher crude prices.

The world's largest public energy company reported net income of $7.56 billion, or $1.60 a share, in the second quarter, up 91% from $3.95 billion, or 81 cents a share, in the same period in 2009.

[Bill McBlueState]

4. Voinovich is the lamest of lame ducks,

as he's retiring in two months. I guess that's the only time Republicans can push for financial responsibility.

[Angry Dragon]

7. I am so glad to see a regressive tax hike

What happened to this no new taxes??
Are the rich planning to drive more to pay their fair share??

[HooptieWagon]

14. How about a gas tax increase that also funds mass transit and alt energy?

[Angry Dragon]

15. Why do you want to tax the people on the bottom??

Tax is tax ......... if you put the tax on the people on the bottom it just makes it harder for them.
Tax the people at the top.
Why should the people at the bottom pay a higher percentage of their income
than the people at the top??

[SOS]

19. Easily mitigated

Consolidate car trips to drive fewer miles and/or buy a more fuel efficient car.

Reduces oil consumption, promotes fuel efficiency, raises revenue and creates jobs.

Combine the gas tax with Robert Reich's idea for a payroll tax holiday and we've got a way to
reduce oil consumption and put a net gain in the pockets of the average citizen.

(And gas would still be cheaper than in 2008 when Wall Street parasites drove the price to $4 a gallon.
People paid the $4 and the country got nothing for it. At least with a gas tax we could fix a few bridges)

[Angry Dragon]

21. I really hate regressive taxes

[taterguy]

30. Is it regressive that AMTRAK fares aren't based on income levels?

Why should someone that's just getting by pay the same as a Fat Cat?

The answer is that there's no viable other way.

I would hate to have to submit tax returns just to buy a train ticket.

All government transportation revenues are regressive.

So the actual issue is what form of transportation should get the majority of resources.

Subsidizing automobile usage by keeping gas taxes artificially low just promotes behavior that's bad for the planet.

But I won't claim to be smart enough to know what the gas tax should be.

[HooptieWagon]

33. And milk!!!

Oh noes!!!111!!! Poor people pay the same $3.29/gal for milk as wealthy people! It's not fair!

[HooptieWagon]

32. How many people at the very bottom even own a car?

Or if they have managed to hold on to a car to live in after losing their home, just how many miles/day do they drive? I seriously doubt they are doing 50, 60 miles daily commuting. Increasing the gas tax can fund a mass transit expansion for people too poor to own a car, or too poor to put any gas in it if they have managed to hang on to one. They will have a means to get to work. Additionally, a gas tax increase can pay for badly needed infrastructure repairs. It makes sense for the people wearing out the roads and bridges pay for their maintenance. Lastly, a gas tax increase can pay for alt energy research (good jobs!), so we don't have to keep drilling for oil in environmentally sensitive areas and buying foreign oil.

[Juche]

9. That is about $45 billion a year

I think we use about 180 billion gallons of fuel a year.

A problem with this idea is it is a regressive tax. If you make $1200/month in take home pay and spend $100/month on gasoline then that would be an extra $7-10/month. Not a lot, but as a % of income far higher than what wealthy and upper income people will pay.

Even so, it probably needs to be done. And if it makes alternatives more appealing then even better.

[FreeState]

17. +1

I favor increasing taxes on the wealthy and investing inca way out of oil - regressive taxes hurt everyone but the ultra wealthy.

[WinkyDink]

10. Briar patch......

[Kaleva]

18. Every billion spent creates roughly 40,000 jobs

"For every $1 billion spent on highway construction, 47,500 jobs are generated each year. Every dollar invested in the highway system yields $2.60 in economic benefits to the nation."

http://www.nssga.org/communications/whoweare.cfm

This PDF file states that for every 1.25 billion spent on road and bridge repair, 47,073 jobs are created.

http://www.ferndale-mi.com/Government/jobs_decoder.pdf

[HuckleB]

20. Put 1/2 toward mass transit, and maybe, just maybe.

[taught_me_patience]

25. I fully support this

The gas tax hasn't been raised in a long time... yet inflation makes maintaining the roads more and more expensive. $.25 is the minimum they should raise the tax... $.75-$1.00 would be more in line with what is necessary to fix our highways and bridges.

[name not needed]

26. Yup.

Raise it a dollar, and take in an additional 140-180 billion per year. Use it to build a high speed rail network and maintain our infrastructure.

[Kaleva]

31. This is one tax increase I'd support.

I'm on the lower end of the spectrum as far as income goes but I wouldn't mind paying more for gas as I know the overall benefits to the nation would far outweigh the pain my wallet would feel.

[Romulox]

34. I, too, support increasing taxes on the poor in order to fund tax cuts for the rich!

I'm a "progressive"!

[kctim]

35. This would all but guarantee

a Republican Senate and President.

[taterguy]

36. Lyndon Johnson pushed for the Voting Rights Act despite knowing it would lead to GOP victories

Sometimes doing the right thing is more important than doing the strategic thing.

And it really just depends on how it's sold.

If we had an honest and fact-filled discussion about how roads are paid for in this country, there would be a consensus that the current gas tax is too low.

[gratuitous]

39. A regressive tax!

Oh noes! Let's see, you gas up what, every other week? 12 gallons or so? That's four bucks at 25 cents a gallon. Instead of a fill-up costing you $34, it'll cost you $38. Eight dollars a month, plus eight dollars more for the extra two weeks per half year, and you're looking at about $104 for the year to maintain roads and pay for new ones.

Unlike some other taxes, there are ways to ameliorate this one. Assuming most of your gasoline bill comes from commuting to work, a person could carpool once a week, or take an alternative means of transportation to work (walk, bike, mass transit) once every two weeks, and cut that tax by 10%, down to about $95 a year. I've seen more onerous taxes going to more objectionable ends.