NOW is the time to increase Federal and State gas taxes.

The fuel tax is $/gallon, not a percentage of price.

You could still have a % increase in the current charge per gallon.

For example the federal gas tax is 18.4 cents per gallon.

Raise it 10% and the tax will be 20.2 cents per gallon.

Or a 1.2 cents per gallon increase.

We can handle that, right?

Yes!!! We, the radical leftists of America, must STOP people from enjoying rising standards of living!!! If the people get a taste for being able to make ends meet on their own, they'll never vote Democrat again!!!! We must force financially struggling Anericans to pay out the ass for energy!!!!

I think rising standards of living would include safe bridges to travel over.

The advantage of higher gas taxes (based on $ per gallon, similarly to what's common in Europe) is that it reduces the lever when crude oil prices are increasing.

When gas went from $2 to $4 (100% increase), in Europe it only went from 1 EUR to 1.50 EUR (50% increase).

At the same time they should lower taxes on the other side, e.g. Fed Income tax.

X-Runner wrote:

I think rising standards of living would include safe bridges to travel over.

I for one am particularly fond of breathing air.

So what is the point if you increase the gas tax and decrease the income tax? Taxes is still on the shoulders of those who work for a living, and just changes where it comes from. Seems kind of stupid to me. But then that is what government is best at.....being stupid and short sighted. And if you want to be like Europe, my suggestion is that you move there. I have lots of relatives there that just love to complain about their economy and how their government rips them off left and right. Perfect for those of you who thing the grass is greener in Europe.

justthefacts wrote:

So what is the point if you increase the gas tax and decrease the income tax?

Two reasons:

1. It will lead to people buying more fuel efficient cars (better for the environment)

2. less drastic effect when crude oil prizes increase again

Yes, I'm all in favor of raising gas taxes! This way we can get the poor to support more of their fair share of the costs of new bridges. I want my employees who have to drive to my house to do my landscaping and clean my house to pay more in gas taxes! Great idea. Lets do it.

Sales tax on consumer goods is a percent of sale.

So poor people pay more taxes when the price of consumer goods goes up.

With vehicles being more fuel efficient, the tax revenue per gallon is actually going down as the price of gas has gone up since 1996.

X-Runner wrote:

Sales tax on consumer goods is a percent of sale.

So poor people pay more taxes when the price of consumer goods goes up.

With vehicles being more fuel efficient, the tax revenue per gallon is actually going down as the price of gas has gone up since 1996.

right, and what is the problem again?

The problem is the funding to maintain and repair infrastructure.

You know, the unsafe bridges we were talking about and such.

http://www.reuters.com/article/2014/04/24/us-usa-infrastructure-bridges-idUSBREA3N1FQ20140424

Raising the gas tax while lowering income tax will discriminate the hardest against the poorest citizens. It may help pay for bridges and roads but it would set back the consumer spending benefits the economy needs now.

The lowest quintile by income in the US spends almost 13% of their income on gas and motor oil and most of them pay no income taxes.

The highest quintile pays about 3% of their income on gas and oil and they pay the highest tax rates.

To help pay for the needed bridge and road repairs there should be a tax levied against any form of media that mentions Hillary or Jeb running for president in 2016.

1987 air max wrote:

Raising the gas tax while lowering income tax will discriminate the hardest against the poorest citizens. It may help pay for bridges and roads but it would set back the consumer spending benefits the economy needs now.

The lowest quintile by income in the US spends almost 13% of their income on gas and motor oil and most of them pay no income taxes.

The highest quintile pays about 3% of their income on gas and oil and they pay the highest tax rates.

To help pay for the needed bridge and road repairs there should be a tax levied against any form of media that mentions Hillary or Jeb running for president in 2016.

I agree with all of this.

That said, gas tax revenue should go up to stay in line with everything elese that has gone up over 20 years.

May 3, 1996 wrote:

Maybe a 20% bump?

why not 50%, comrade? The State knows best, all hail the State... Let them decide how best the worker's wages shall be spent...

Greedy bourgeois capitalist pigs care nothing for the workers or the greater good!

I could maybe agree with 50%, no doubt. That's a great idea.

Since wear and tear on our roadways is correlated to some degree with miles driven and the weight of the vehicles, I would like to see the costs associated with maintaining these roadways meted out accordingly. If you drive more miles you should pay more for upkeep. If you drive a heavy vehicle, you should pay more for upkeep.

The gas tax seems like a fairly reasonable method of doing this. It isn't perfect, but no system will be.

There are known and predictable costs associated with maintaining safe roadways. We ought to have the tax on fuel for our vehicles adjusted regularly to cover these costs. Note: That would include electricity for hybrid/electric vehicles.

On a related, but separate line of thinking, I do think it would be in our best interest to fund transportation related research from a tax on fuels as well. Expecting corporate america to do this research on their own is short-sighted. A "smart car" system would require creating infrastructure. I would rather such costs be paid by revenues from user taxes rather than by income taxes.

The really stupid thing is how economists say the oil price decline is effectively like a big tax cut for many low to middle class Americans. And that is good news because it will spark the economy.

If they really believe that (and I think they are right), than why not just cut payroll taxes? They are as much as admitting that tax cuts that put money into the pockets of millions of households for them to spend really is better for growing the economy than any other tax cut. Basically all the economist are vindicating an idea that only the Progressive Party promotes. (putting aside Libertarians who don't want any government or taxes of any kind).

If you are self righteous about payroll tax cuts needing to be paid for, than raise gas taxes and put into the social security fund. I continue to be outraged how we tax job skills and hard work over non renewable, polluting fossil fuels.

It becomes even more absurd given the fact that most Americans had become used to 3.50/gallon oil. Obviously its nice when prices swing lower. But when prices are volatile as it has been for about 10 years it becomes more an annoyance than anything. It messes up decisions like car buying and planning a commute. Airlines go out of their way to get smooth gas prices over a long term even at the expense of higher gas prices by entering into hedging transactions. That way they can better plan and execute their business strategy. Us consumers aren't that different. Why not have a flexible gas tax that can be raised when prices plummet and lowered when prices approach $4.

Yes, because the State already manages our trillions so efficiently & without.corruption that we should reward their brilliant stewardship with more revenue.

Surely they can do better with our $$ than we..