Raising Gasoline Tax by 10 Cents?

[BNaylor]

I mean come on what are they going to be thinking of next. We are taxed enough. We get it in the you know what either way. My question is what about all the revenues that were collected in the past by the Feds and States. Shouldn't that have been spent on our infrastructure like roads and bridges instead of bailing out Wall Street, banks and the mortgage industry?

So now that we are supposedly driving less we pay the penalty?

Source: AP
January 2, 2009

Raise gasoline tax by 10 cents, Congress urged
Federal panel: Revenue for roads, bridges declines as motorists drive less

In a report expected in late January, members of the infrastructure financing commission say they will urge Congress to raise the gas tax by 10 cents a gallon and the diesel tax by 12 cents to 15 cents a gallon. At the same time, the commission will recommend tying the fuel tax rates to inflation.

Link to Article

['97ventureowner]

Originally Posted by BNaylor

I mean come on what are they going to be thinking of next. We are taxed enough. We get it in the you know what either way. My question is what about all the revenues that were collected in the past by the Feds and States. Shouldn't that have been spent on our infrastructure like roads and bridges instead of bailing out Wall Street, banks and the mortgage industry?
So now that we are supposedly driving less we pay the penalty?

Exactly as I've been thinking. First they tell us we need to conserve and use less fuel. Then when we do, they come back and say because we are using less fuel, the tax revenues are down and they need to raise the tax to make up the difference.
Same thing goes for my gas/electric utility. They ask us to use less and have all these conservation programs to help us achieve that goal. And then when we do end up using less, they enact a ''surcharge" on our bills to make up for "deviation from the norm," which is a monthly charge ( or credit, but I don't remember the last time I saw one though) that adds an extra charge whenever a customer uses less than what they normally are projected to use. You're screwed either way.
Wasn't there reports out a few years back which showed the monies being collected on the Federal gas tax was being diverted to other areas, and not all of it was being used for it's intended purposes? If that's the case lets re-direct those funds back to where they belong before increasing the tax, especially in a time when the economy is the way it is.

[MagicRat]

That decision by Congress shows that collectively they cannot make responsible taxation decisions.

An increase in fuel taxes will increase the cost of living and the cost of virtually any good or service that is sold today. This tax will take many millions of dollars out of consumer's pockets, preventing them from spending it to benefit the economy.
How is this an economic stimulus??

If they must tax something, tax beverage alcohol and tobacco (your prices are much lower than ours).
People do not have to drink and smoke, but they sure have to drive.

[BNaylor]

Originally Posted by MagicRat

If they must tax something, tax beverage alcohol and tobacco (your prices are much lower than ours).
People do not have to drink and smoke, but they sure have to drive.

The state bean counters already have that loophole covered. I can't speak for all states but Texas already imposes a heavy tax on alcohol and smokes. Annual vehicle registration has a bridge and roads fee (tax) tacked on for most Texas counties. However, they will probably think of something else to screw us over more.

[MagicRat]

Originally Posted by BNaylor

However, they will probably think of something else to screw us over more.

Found it!
Your sales taxes are much lower than ours in Ontario.
(Here its 8% provincial sales tax and 5% federal tax, for a total of 13% on all goods and services sold)

Since Texas has a combined total of up to only 8.1%, there is ample opportunity for the taxman to go to work.

State - 6 1/4% (.0625)
City - 1/4% (.0025) - 2% (.02), depending on local rate.
County - 1/2% (.005) - 1.5% (.015), depending on local rate.
Transit - 1/4 % (.0025) - 1% (.01), depending on local rate.
Special Purpose Districts - 1/8% (.00125) - 2% (.02), depending on local rate.http://www.window.state.tx.us/taxinfo/sales/

[thrasher]

The infrastructure in this country is extremely dated and is breaking at the seams, and people are complaining about a 10c gas tax? The revenue will go to invest in the maintenance of existing roads as well as in the construction and replacement of new roads. How does this benefit the economy? It creates jobs, plain and simple. It's no small coincidence that the 3 largest economic booms of the 20th century (Germany in the 30's and 40's, the US following WWII, and China now) are all associated with huge infrastructure development and public works projects

['97ventureowner]

Originally Posted by thrasher

The infrastructure in this country is extremely dated and is breaking at the seams, and people are complaining about a 10c gas tax? The revenue will go to invest in the maintenance of existing roads as well as in the construction and replacement of new roads.

That would be nice if it were entirely true. I wouldn't mind a ten cent tax if that money went to it's intended purpose and not get raided to pay for something else. I'm wondering when gas prices were so high the past few years and extra monies were collected on the present taxes because of that, where is all that revenue? Obviously it wasn't used to keep up the infrastructure. Taxpayers are getting sick and tired of being taxed for practically everything and the money not going for it's intended purpose.

[MagicRat]

Originally Posted by '97ventureowner

That would be nice if it were entirely true. I wouldn't mind a ten cent tax if that money went to it's intended purpose and not get raided to pay for something else. I'm wondering when gas prices were so high the past few years and extra monies were collected on the present taxes because of that, where is all that revenue? Obviously it wasn't used to keep up the infrastructure. Taxpayers are getting sick and tired of being taxed for practically everything and the money not going for it's intended purpose.

Entirely true. Many politicians do not particularly like privately-owned cars (they pollute, cause congestion, accidents, injury death etc) and consider other projects, including public transit to be politically much more appealing (but not realistic). Cars are an easy and popular mark for such taxes.

IMHO gas taxes need to be resisted by the electorate, or else there will be no end to the auto-related fees that some politicians will want to impose.
I see this a lot in my city (Toronto) which is run by a decidedly leftist bunch of politicians. The private car here is slowly becoming damned expensive to keep because of the ever increasing fees, legislation etc.

[03cavPA]

Originally Posted by '97ventureowner

I'm wondering when gas prices were so high the past few years and extra monies were collected on the present taxes because of that, where is all that revenue?

Well, the tax is collected per gallon, not based upon price. Even though prices were up, the tax was collected on volume, not overall sales amount.

On top of that, many locales reduced or dropped the gas tax to try to give the drivers a break from higher prices. Drivers cut back on driving and it resulted in even less tax revenue on gas.

I don't see a problem with collecting taxes on gasoline to help pay for infrastructure improvements, if that's what it will be used for, but i don't have any more faith than you guys do that it will happen that way.

Give a politician some tax money, and he'll spend it any way he feels like it.