SoylentNews is people
SoylentNews
Pat Garofalo writes in an op-ed in US News & World Report that with the recent drop in oil prices, there's something policymakers can do that will offset at least some of the negative effects of the currently low prices, while also removing a constant thorn in the side of American transportation and infrastructure policy: Raise the gas tax. The current 18.4 cent per gallon [federal] gas tax has not been raised since 1993, making it about 11 cents per gallon today, in constant dollars. Plus, as fuel efficiency has gotten better and Americans have started driving less, the tax has naturally raised less revenue anyway. And that's a problem because the tax fills the Highway Trust Fund, which is, not to put too fine a point on it, broke so that in recent years Congress has had to patch it time and time again to fill the gap. According to the Tax Policy Center's Howard Gleckman, if Congress doesn't make a move, "it will fumble one of those rare opportunities when the economic and policy stars align almost perfectly." The increase can be phased in slowly, a few cents per month, perhaps, so that the price of gas doesn't jump overnight. When prices eventually do creep back up thanks to economic factors, hopefully the tax will hardly be noticed.
Consumers are already starting to buy the sort of gas-guzzling vehicles, including Hummers, that had been going out of style as gas prices rose; that's bad for both the environment and consumers, because gas prices are inevitably going to increase again. According to data from the U.S. Energy Information Administration, taxes last year, even before the current drop in prices, made up 12 percent of the cost of a gallon of gasoline, down from 28 percent in 2000. And compared to other developed countries, US gas taxes are pretty much a joke. While we're at it, an even better idea, as a recent report from the Urban Institute makes clear, would be indexing the gas tax to inflation (pdf), so this problem doesn't consistently arise. "The status quo simply isn't sustainable, from an infrastructure or environmental perspective," concludes Garofalo. "So raise the gas tax now; someday down the line, it will look like a brilliant move."
(Score: 2) by morgauxo on Friday November 14 2014, @05:20AM
"When prices eventually do creep back up thanks to economic factors, hopefully the tax will hardly be noticed."
I do agree with one thing this guy wrote. Gas prices will go back up. And then what? It's not like his gas tax he loves so much will be revoked once the price goes back up. Taxes are almost never lowered! There is far more resistance to that then there is to adding new taxes in the first place. So.. his taxes are implemented, people hurt. Gas goes up.. plus those taxes are still there... people hurt even more!
What an asshat!
(Score: 2) by zeigerpuppy on Friday November 14 2014, @06:52AM
Preemptively raising petroleum taxes makes sense only if the money is spent on transition away from petroleum dependency.
Crude oil is becoming scarcer and, more importantly, requires more energy to extract (EROEI). The USA and other liquid hydrocarbon dependent countries are lining themselves up for massive economic collapse unless they prepare for petroleum scarcity.
A price on consumption that also encourages alternative technologies is a logical way to provide a price signal to the market. Transitions will probably be to electric for short distance light vehicles and ammonia for long distance heavy vehicles. The build out cost will be huge to transition so a healthy investment in public transport and city planning for more compact urban development will also be required.
Leaving this too long just makes the pain more severe down the line, there's no magical tech around the corner as the sheer scale of rebuilding the vehicle fleet will still require energy input (most likely of remaining fossil fuels that are getting more expensive).
Will your government be forward thinking enough to manage this transition properly or will they allow the fossil fuel giants to concentrate their influence by price gouging in the twilight of the fossil fuel age?