Raising gas taxes?

Did you know that Congress hasn’t raised the federal gas tax since 1993?

And states are losing out on more than $10 billion in revenue that could go towards infrastructure needs because they won’t increase gas taxes in their states according to an article in The Huffington Post.

(New York has a variable rate gas tax, Alaska has not increased their tax in 41 years)

And it’s all political.

It’s the word tax. It’s a dirty word these days.

A new report by the Institute on Taxation and Economic Policy has some recommendations:

1. Increase gas tax rates to (at least) reverse their long term declines.

2. Restructure state gas taxes so that their rates rise automatically alongside the inevitable growth in the cost of transportation construction projects.

3. Create or enhance targeted tax credits for low income families to offset the impact of gas tax reform.

Jan

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: