The Federal gas tax is set to expire at the end of September. The gas tax is $0.184 per gallon and has stayed at that level since 1993. So both as a percentage of the cost of a gallon of gas and as an absolute amount when inflation adjusted, it has gone down quite a bit since then.
It seems as though President Obama and the Congress like to wait until the last minute to deal with these things as proof think about the debt ceiling and the funding of the FAA. Instead of remaining aloof from the fray, President Obama should be out talking with the American people to get their support for an extension and a significant increase in the gas tax.
I just returned from Europe where gasoline is substantially more expensive, like US$7 to US$8 per gallon. The price difference is virtually all in the taxes. We need a higher gas tax in order to encourage conservation and reduce our dependence on fossil fuels. As a liberal, I understand that the gas tax is quite regressive. But we certainly could provide offsetting tax credits to compensate for the increased gas tax to low income people. They would still be encouraged to reduce their gas usage but would not be penalized if they are required to drive and cannot afford a more efficient car.
Unfortunately, President Obama is unwilling or unable to take the lead on this (or for that matter on any other issue) and instead of pushing for a higher gas tax, he is pushing for more dangerous drilling for oil in the Gulf of Mexico and the Arctic Ocean which will not help reduce the price of gas or wean us off fossil fuels.
Thanks for reading and please comment,
The Unabashed Liberal
No comments:
Post a Comment