Raise the Gasoline Tax a Nickel

I have a lot more faith in state government than federal. Most of the states have balanced budget requirements and in most jurisdictions we can recall anybody that’s too idiotic. Neither reason applies to the feds.

I am not aware of any state that does not have a serious or critical problem with the condition of the roads and bridges. The natural funding of the repairs comes from federal and state gasoline taxes. The reasoning for this “user fee” is based on the fact that traffic wears out the roads and bridges. Pay as you go, what a novel concept.

States are afraid to raise the gasoline tax as they are concerned we will gas up on the other side of the state line. In theory, most of the federal tax should come back to the states with the exception being U.S. highway projects. (Of course, the bureaucrats usually send it back with conditions that make the process inefficient.)

The federal gasoline tax has been fixed at 18.4 cents per gallon since 1997. What if we raised it a nickel and gave it back, unconditionally, dollar for dollar to the respective states that generated the fee?

The increase would generate almost 7 billion dollars a year, every year (not a short term stimulous). The Federal Highway Administration claims a billion of funding results in 27,000 jobs. In total, we’re talking 189,000 jobs! Maybe 189,000 families can hold their heads high and no longer need unemployment compensation, food stamps or welfare payments. Good jobs=higher revenues, lower expenditures…….sounds like deficit reduction.

Front end alignments, cracked windshields, flat tires, damaged mufflers and catalytic converters, injuries, and a few deaths are some of the indirect costs of pitiful roads and bridges.

An average driver, burning 1,000 gallons of gasoline a year would be out $50. Compare the $50 to 189,000 jobs, some deficit reduction, less auto repair costs and saving a couple of lives.

Maybe we should raise it a dime.


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