Editorial: High gas prices are bad news for two reasons

Sacramento Bee ^ | 7/22/8 | Editor

[SmithL]

As fuel prices rise, gas tax receipts drop, and money for roads and bridges dries up -

Gas prices are soaring. That's the bad news.

But as they soar, motorists drive less, and that produces some benefits: less air pollution and less congestion. That's the good news.

And then there's the bad news about the good news. The federal gas tax is levied on a per-gallon basis. So the less people drive and the less gas they use, the less the federal government collects from gas taxes.

So it is that recent record high gas prices have produced record low gas tax collections. Because federal gas taxes are deposited in the Highway Trust Fund and are used to fund highway and mass transit infrastructure projects across the country, the slowdown in driving has produced a big hole in the fund. That means less money to build and repair highways and other transportation facilities.

That has the government and the construction industry in something of a panic. As the Los Angeles Times reported this week, the federal government has collected $2 billion less in gas taxes over the first five months of 2008 than it did over the same period last year. States, including California, that depend on federal dollars to repair and improve roads will feel the impact.

In a recent letter to California's congressional delegation, Caltrans director Will Kempton warned that our state stands to lose $930 million or almost one-third of its federal highway funds.

[SmithL]

The Bee can be counted on to always advocate more taxes.

[coffee260]

There is something you can do.

Get Your New Gas Pump Stickers Here! 

and here

Free Gas Pump Stickers! 

And display them where you see fit.

 

Here's a sample:

 

[goldstategop]

Its our fault we aren't paying enough for gas and they need loot still more from our wallets!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[randog]

That means less money to build and repair highways and other transportation facilities.

The roads shouldn't need as much repair if they're being used less.

[edzo4]

if there are less cars and less driving, won't they need less road and bridge repairs?

yet somehow they always need more money and more taxes...

[edzo4]

you beat me by 20 seconds, LOL

[E. Pluribus Unum]

Unlike the peasants, government must never make-do with less.

[xcamel]

[sasquatch]

public employee pensions and medical insurance...

[mouse1]

Thats great!

To date, Pelosi refuses to have a vote on off shore drilling.

Contract Pelosi

AmericanVoices@mail.house.gov

[stuartcr]

Plus normal wear and tear due to weax

[lormand]

How can I get a job as an Editorial headline writer.

I could come up with gems like this...

Black Plague Could Be Bad for 3 Reasons

Unemployment Could Effect Paycheck

[bornred]

Tell me again why we even need a “highway trust fund” or a federal gas tax?

This is to fund projects that the states don’t think are worth the money... right?

[Tzimisce]

Oh no! The Government might have to do with less!

What are we going to do?

[RightWhale]

Factor this into the headline:

Wholesale gasoline is 44 cents off its recent peak price. Retail gasoline is already off 5 cents.

Gulf storm worries drive price of WT crude down $4 to $127

[Cicero]

So it is that recent record high gas prices have produced record low gas tax collections.

Uh . . . that's bad news?

[cousair]

President Bush took the cap off and the prices world wide are going down...Tuesday am., $125.80! Not bad and going down . If the ragheads understand the US will start going after our own oil, the price will continue to go down. After all.....who made them rich?? Pelosi will keep America hostage as long as she can keep calling Bush names. Nice one Congress....nice one. Lets hope the voters are noticing.

[cousair]

President Bush took the cap off and the prices world wide are going down...Tuesday am., $125.80! Not bad and going down . If the ragheads understand the US will start going after our own oil, the price will continue to go down. After all.....who made them rich?? Pelosi will keep America hostage as long as she can keep calling Bush names. Nice one Congress....nice one. Lets hope the voters are noticing.

[holden]

So, Democrat policies lead to reduced gas tax revenue for the government? Maybe government workers ought to begin supporting Republicans and their policies instead of lockstepping their jack-boots in sync with the left!

HF

[KansasGirl]

Why isn’t the construction industry and unions lobbying Congress to Drill Here, Drill Now!