Free Republic

In this Policy Tip Sheet, Matthew Glans examines gasoline taxes, how they have become less effective over time, and why states can no longer rely on them to fund state transportation projects. Problem Gasoline taxes are an unreliable funding source for state transportation projects, road construction, and maintenance due to declining gasoline prices and more fuel-efficient vehicles. In 2015, Daniel Vock, writing for Governing, analyzed state gas tax data reported to the U.S. Census Bureau and found two-thirds of state fuel taxes failed to keep up with inflation. Moreover, gasoline taxes are regressive and produce widespread economic consequences. Increasing fuel...

At a measly 17 cents a gallon, Missouri’s fuel tax is woefully inadequate to fund the state’s growing need for transportation-infrastructure improvements. The more the system deteriorates, the worse our state’s business climate will become. Gov. Eric Greitens could put some muscle into his determination to attract business and generate more jobs by embracing a long-overdue fuel tax increase. The Missouri 21st Century Transportation Task Force, created by the Legislature and approved by the governor last year, proposes to boost the tax by a dime, and by 12 cents for diesel, which is only about half of what’s needed to...

The skills and expertise of fund managers are supposed to give them the ability to select better stocks and bonds than an index like the Dow or S&P 500. The problem is that hasn't been happening lately. A staggering 86% of active large-cap fund managers failed to beat their benchmarks in the last year, according to an S&P Dow Jones Indices scorecard released on Thursday. And no, that wasn't a one-off blip either. Nearly 89% of those fund managers underperformed their benchmarks over the past five years and 82% did the same over the last decade, S&P said.

RICHMOND — An analysis by a nonprofit tax-policy institute says that Maryland and Virginia could have collected hundreds of millions of dollars per year since their last gas-tax increases if they had raised the tax regularly to account for inflation. The states, both of which are desperately trying to cobble together more money for transportation, had among the highest totals in the nation of unimposed gas-tax dollars, according to the D.C.-based Institute on Taxation and Economic Policy. Maryland’s gas tax of 23.5 cents per gallon, in place since 1992, could have generated an additional $421 million per year in the...

Confronted with a struggling transportation fund, lawmakers in Texas soon are expected to wage battle on various methods to help generate $14 billion for roads and bridges throughout the state. Another bill is intended to sideline the planned Trans-Texas Corridor. A report released this week from the Texas Department of Transportation says that the state will need to come up with $313 billion by 2030 for road and bridge maintenance and for congestion solutions. The report’s unveiling happened a couple of weeks before the Texas Legislature is set to convene its 2009 session. Lawmakers say they already were committed to...

Texas Farm Bureau offered several viable transportation and funding alternatives to the proposed Trans-Texas Corridor (TTC) in meeting Texas’ future transportation needs during testimony before the Senate Transportation Committee. “Let me assure you, as an industry we absolutely support and recognize the need for building and maintaining roads in Texas,” said Texas Farm Bureau State Director Tom Paben. “We feel this can be accomplished within the current framework of the Texas Department of Transportation (TxDOT).” “However, there is a need for redirection, as well as a review of the current priorities of the agency,” Paben added, noting several concerns about...

Toll roads will not solve Texas' roadway woes, state Sen. Kevin Eltife, R-Tyler, told the Tyler Area Chamber of Commerce board of directors on Tuesday. The state must take care of its infrastructure needs, and Eltife said he has always supported indexing the gasoline tax to inflation to ensure funding to handle those needs. "I think we need to get back to the basics in this state and pay for road and bridge improvements," he said. "We ought to index the gas tax to inflation, we should build our own roads," Eltife said. "The toll roads are a piece of...

If anything has approximated unanimity in the 80th Texas Legislature, it is the desire to slow down on toll roads. This has left the state’s biggest proponent of toll roads, Gov. Rick Perry, the odd man out. But he’s still the man with the veto pen. The House and Senate last week overwhelmingly approved a two-year moratorium on most toll roads, including the Trans-Texas Corridor. Lawmakers earlier sent a bill to Perry with toll-road restrictions. He vetoed it, and threatened a special session if he didn’t get a bill he could sign. The bill that emerged reportedly meets his terms....

AUSTIN - A two-year moratorium on private toll roads that won preliminary approval in the House last week would put the brakes on the Trans-Texas Corridor, a superhighway that a private firm received a contract for earlier this year. The moratorium also would halt seven near-term projects in the state, said Rep. Lois Kolkhorst, the Brenham Republican who added the proposal to a House bill. "This is us tapping the brakes, looking before we leap ... into contracts that last 50-plus years," Kolkhorst said. Her proposal would require the state to create a commission to study the effects of private...

The growing traffic congestion in Texas is a multipronged problem that cannot be solved by one policy. At a time when toll roads appear to be state leadership's primary answer to the dilemma, a bill proposed by Sen. John Carona, R-Dallas, has merit. The legislation would index the gas tax to the Highway Cost Index, or the cost of highway construction over time. According to Carona's office, the bill by 2030 would generate about $16 billion in gas tax revenue — or 31/2 times more than the current gas tax would. Not only would more money be available for transportation...

At his press conference last Thursday, President Bush added a new “progressive indexing” proposal to his Social Security reform plan that not only largely resolves the program’s imminent insolvency without raising payroll taxes, but also exposes an almost unconscionable hypocrisy in the Democrats’ position on this issue. At odds for months in this debate has been how future payments to recipients are calculated. Currently, increases are tied to annual wage gains of the workforce. However, it has been argued that if they were indexed to the growth of inflation, or “prices” -- which have typically been much lower than changes...

PARIS, April 9 - As president of the French National Library, Jean-Noël Jeanneney has good reason to feel safe from the frequent incursions of American popular culture into contemporary French life. With its collection of 13 million books, the library is a reassuring symbol of the durability of French literature and thought. Yet Mr. Jeanneney is not one to lower his guard. He grew alarmed last December when he read that Google planned to scan 15 million English-language books and make them available as digital files on the Web. In his view, the move would further strengthen American power to...