Should Congress Raise the Gas Tax?

January 5, 2009 · Print This Article

Now that gas prices have retreated back from the stratosphere back to a very comfortable (sigh of relief) average of $1.60 nationwide — is it instance for policy makers to initiate a gas tax hike? Before you get too worked up, just let me say that that isn’t my notion. A columnist at Forbes.com is arguing that a $1 hike in gas taxes could cut fuel consumption, increase demand for fuel-efficient vehicles, and net the federal government $137B that be used on transportation infrastructure. And whether they did it now, it would only sting a little.
Here’s the billion dollar question: would it actually do any or all of these things? Forget for a moment that the view of paying $4 a gallon again sends shivers down your spine, or that congress’ record is pretty suspect when it comes to money management, or the fact that more infrastructure would primarily mean more roads (more cars, sprawl, etc.) What strikes me is the assumption

that citizens are justing to lower fuel prices.

I don’t get the impression that Americans are expecting cheap gas to be a permanent trend. I haven’t noticed any of my friends taking advantage of low fuel prices by running out and buying a new Hummer — or a new anything for that matter …

To put it in perspective though, the average fuel tax in Europe is around $3.50 per gallon. still, it’s pretty much political suicide to substantially raise taxes on fundamental items during hard times. particularly whether one of your arguments for it is: “well, they do it in Europe.”

Do you think raising the gas tax from $.47 to $1.47 a gallon would be worth the hassle? Would it manufacture society wake up? Or just put an unnecessary strain on the overstressed economy?

Should Congress Raise the Gas Tax? originally arised on Green Daily on Mon, 05 Jan 2009 14:00:00 EST

[Source] Josh Loposer

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