Post Tagged with: "Gas Tax"

Tax Time: Obama Urged to Raise Gas Taxes to Save Roads

February 27, 2009 at 10:54 am

(Source: Wall Street Journal’s Environmental Capital Blog)

President Obama this week urged the country to boldly confront challenges and take responsibility for the future. Today he was starkly reminded by a Congressionally-appointed commission to do the same when it comes to filling the massive hole in the nation’s transportation budget.

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In a report issued today, the National Surface Transportation Infrastructure Financing Commission said that raising gasoline taxes and taxing miles driven instead of gallons are the only viable ways to get the tattered U.S. road and transit system back on track. The Obama administration just shot down both proposals.

The recommendation was two years in the making—the commission’s mix of transport industry veterans, elected officials and think-tankers has been trying to divine how to raise the extra money needed to maintain and improve roads, buses, and trains.

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ATA argues against mile-based tax

February 27, 2009 at 12:22 am

(Source: etrucker.com)

The American Trucking Associations this week opposed a federal recommendation for a vehicle miles traveled tax, saying it presents privacy concerns.

ATA’s comments come in response to the National Surface Transportation Infrastructure Financing Commission’s report on highway funding challenges. The commission anticipates increasing problems with relying on fuel taxes to support infrastructure improvements because of increasing strides in fuel efficiency.

The commission’s solution – to migrate to a vehicle miles traveled tax – presents privacy concerns that not only are intrusive, but also could lead to new forms of fraud and identity theft, ATA argues. Also, the costs to implement and maintain the program would reduce the amount of funds available for infrastructure, ATA says.

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Blue-ribbon panel endorses road pricing, shift from gas tax

February 26, 2009 at 4:01 pm

(Source: Greenwire via New York Times)

A blue-ribbon federal transportation panel called today for a temporary gas-tax hike followed by a move toward charging drivers directly for every mile they travel — two ideas that have been soundly rejected by the White House in the past week.

The controversial road-pricing scheme would become the dominant funding mechanism for road construction and maintenance by 2020, with drivers being charged an average of 2 cents per mile, according to the report released by the 15-member panel created by Congress in the last highway bill authorization.

The National Surface Transportation Infrastructure Financing Commission says the shift is necessary because the current funding mechanism — federal fuel taxes — has failed to raise the necessary revenue for needed roadwork and runs counterintuitive to national environmental and energy goals.

“The more successful U.S. transportation policy is at increasing fuel efficiency and reducing both foreign oil dependency and carbon emissions, the faster its primary funding source, the gas tax, becomes obsolete,” said Texas state Rep. Mike Krusee, a commission member.

Increases in fuel economy, coupled with the fact that the current federal tax on gasoline has remained stagnant at 18.4 cents a gallon since 1993, have already taken their toll on federal revenues to fund road construction and maintenance. The Highway Trust Fund, which receives the bulk of its money from federal fuel taxes, would have run empty late last year if it were not for an eleventh-hour transfer of $8 billion by Congress to keep it solvent.

“With the expected shift to more fuel-efficient vehicles, it will be increasingly difficult to rely on the gas tax to raise the funds needed to improve, let alone maintain, our nation’s surface transportation infrastructure,” said commission Chairman Robert Atkinson, president of the Information Technology and Innovation Foundation, a nonpartisan think tank.

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Untangling Transportation Funding – Brookings Institution’s paper on Vehicle Mileage Taxation

February 26, 2009 at 3:24 pm

(Source :  Thanks to Robert Puentes @ The Brookings Institution for sharing this article)

FEBRUARY 26, 2009 —  As the recent kerfuffle between the Transportation secretary, the White House, and a key congressional leader demonstrate, issues around funding and finance dominate the discussion about surface transportation in the U.S. today.

Already, we have had not one—but two—national commissions on the topic, and the U.S. Government Accountability Office (GAO) recently added transportation financing to its annual list of high-risk areas suggested for oversight by the current Congress.

Why the high anxiety? 

Put simply: the money flowing out of the federal transportation trust fund (often referred to as the “highway” trust fund) is greater than the money flowing into it. This past September Washington was forced to shift $8 billion from the general fund to cover a shortfall in the transportation account. Estimates for how short the fund will be this summer hover around $9 billion.

Despite the sharp, and perhaps simplistic, rhetoric of late, the origins of the shortfall are the result of multiple trends converging.

For one, the federal gas tax—generating nearly 90 percent of the federal transportation revenue—has not been raised in nearly 20 years, not even to keep pace with inflation. So, as the rate effectively declines, so does the purchasing power of the trust fund. The current 18.4 cent per gallon tax in the U.S. is far less than in European competitor nations.

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GOP gas tax protest draws dozens

February 25, 2009 at 6:01 pm

(Source: Boston Globe)

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(George Rizer/Globe Staff)

A few dozen activists clutching posters and red gasoline cans attended a Republican rally this morning on the steps of the State House to protest the governor’s plan to raise the gas tax by 19 cents.

The protesters urged drivers on Beacon Hill to honk to object to Governor Deval Patrick’s transportation bill, which would increase the gas tax instead of tolls on the Massachusetts Turnpike.

“Everybody who drives to work was honking their horn,” said Barney Keller, spokesman for the state Republican Party. “It went excellent. We had people braving the cold.”

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GPS-Monitored Vehicle Fees: Change You Can’t Believe In

February 22, 2009 at 12:07 am

(Source: InsideGNSS.com)

One change that apparently won’t happen under the Obama administration is replacing the federal gasoline tax with a GPS-monitored mileage fee.

In an interview with the Associated Press last week, U.S. Department of Transportation (DoT) Secretary Ray LaHood had suggested that his agency should look at a “vehicular miles program where people are actually clocked on the number of miles that they traveled.”

 

It was one of the shortest flights of a trial balloon so far this year.

When asked at his February 20 news briefing about the mileage fee concept and whether President Obama had “weighed in” on the subject, White House press secretary Robert Gibbs said, “I don’t believe the President has. I can weigh in on it and say that it is not and will not be the policy of the Obama administration.”

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