Posted on 05/01/2019 6:44:08 AM PDT by Mariner
Democrats and Republicans are quick to talk up a bipartisan infrastructure deal. Yet neither party wants to take the political risk of paying for it when all options are toxic -- including the obvious choice of raising the national gas tax.
Increasing the gas tax is so politically fraught that it hasnt been touched in 26 years and it didnt even come up at a meeting at the White House Tuesday between President Donald Trump, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer to discuss an infrastructure plan.
While they agreed broadly on the need to upgrade roads, bridges and airports, they put off for three weeks the tougher conversation about coming up with ways to fund an estimated $2 trillion in public works.
Taxes on fuel in the U.S. are among the lowest in the developed world, at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, and infrastructure advocates see raising the levies for the first time since 1993 as the best short-term option to generate needed revenue.
Still, a measure that would disproportionately affect poor and rural drivers raises opposition at all levels of the political spectrum. Its also created strange bedfellows -- aligning members of the conservative House Freedom Caucus, born from the Tea Party movement, and progressives such as Senator Elizabeth Warren of Massachusetts, a Democratic presidential candidate.
(Excerpt) Read more at finance.yahoo.com ...
Yep. The problem is that it would be very destructive to the economy to make the switch.
That’s why I don’t think it will happen until the entire culture first does a reset (hot war of some sort).
Toll roads catch Priusses and the other hybrids that the gas taxes miss. Sounds like a better choice.
And how does eliminating the purchase rebates make them pay anything for the use of the roads? You drive a prius?
“OK, first off let’s remember how this ended for George Bush. Just five cents a gallon more and the no new tax pledge gone and used relentlessly against him by even the democrats.”
This is the trap they are setting for Trump.
The federal and state governments already make more money per gallon than anyone else along the entire production/distribution/retail chain.
The problem is, that money was supposed to be for roads for vehicles, but it's being spent on bike paths, choo-choo trains, green space, bus programs, and a multitude of other things that are not roads for vehicles.
When they stop frittering road taxes away, and start funneling them back to actual roads for vehicles, then I might consider paying more fuel tax to compensate for any shortfall.
“then I might consider paying more fuel tax to compensate for any shortfall. “
So, you would rather pay for this boondoggle with debt and income taxes?
How very progressive of you.
I drive a Tahoe.
Elimination of purchase credits will, eventually, eliminate the vehicles.
They simply cannot compete. They would not sell, and manufacturers would quit making them.
When Daddy Bush was in the WH, he approved and imposed a national $0.05/gallon gas tax. The purpose given was supposedly for national infrastructure and roadway repair. That tax remains in place today. Where did and is all of that money going?
The House s has already been shot down by the USSC. The Fed government is only allowed excise and income taxes as revenue. The gas tax is an excise tax.
If the government is going to burn another $2T let them ban entitlements for illegals they would get twice the money they want.
We’re supposed to forget about the trillion dollars Obama wasted on alleged ‘shovel ready’ infrastructure projects.
How about this art of the deal - remove the ethanol from gasoline first, then discuss additional tax on fuel.
By the way, would that tax include fuel for aircraft?
I know just one penny increase in the price of fuel costs the majors (like AAL) roughly one million dollars extra. Shipping, trucking food to the supermarket, etc. all will pass it on to final demand.
Point being that Mr./Mrs. Average pay for the tax in more ways than just from topping of their automobile gas tank.
Correct, it is a use tax, those people who drive around all day doing nothing pay as well.
So, you'd prefer to keep the boondoggle projects and just raise the tax rate to cover the existing misappropriation and the new cost of building/repairs? Who's the progressive?
No, I would NOT allow the spending of $2T on what will be pure pork.
If I had the power to stop it.
But they are going to do it anyway.
And if they are going forward, I would rather it be paid for, and paid for via the most regressive/fair tax possible.
A sales tax, or a tax on fuel.
You hit the nail on the head. It is hard to believe folks on FR are suddenly supporting a permanent tax hike that will affect there kids and grandkids.
Our econmy will be hit hard by this onsanity.
More taxation is not the answer.
China tried repavong to create economic growth.
So, what is going on in our economy, that they are panicking and making America paved again.
Local governments in CA used the last infrastructure tax dollars for political gains, while we read daily about a dam in crisis.
Who believes we should pour yax dollars in expensive states to rescue their economies.
If it costs 500 a foot in Mississippi, we should only send CA that same amount, but that won’t happen.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.