Gas Tax

I know it's tempting to gloat.

One nay-sayer argument against greater federal spending for transportation goes like this: “Too many faceless bureaucrats in Washington have too much control over how states spend their money. Let states raise their own revenues and spend them as they wish.”

Since the 112th Congress convened in January, the federal government almost shut down, the government almost defaulted on its debts, and the FAA was temporarily shuttered. It’s the Crisis Congress, thriving on the chaos of catastrophe. Next up: a bruising fight over funding the transportation system.

Ben Smith of Politico mentioned a little tidbit that has eluded some of us: The federal gas tax expires September 30, at the same time as the current reauthorization extension. Most of it, anyway -- 4.3 cents of the current 18.4-cent-per-gallon tax will stay.

Transportation reformers around the country have long been disappointed at politicians’ unwillingness to raise the gas tax to pay for infrastructure. It seems, to many, an obvious and necessary solution for the chronic underfunding of our transportation system. Meanwhile, to the politicians, it is just as obvious that raising consumer taxes during a recession is a bad idea.

Well, it’s unanimous – everyone agrees the country needs a significant hike in the gas tax. Everyone outside of Congress, that is. Last week, General Motors CEO Dan Akerson told The Detroit News that a higher gas tax would help solidify the market for more fuel-efficient cars.

Connecticut state senators just voted to increase the state gas tax by three cents. The New Hampshire House Speaker has proposed cutting theirs by five cents – but only for two months, to help drivers bear the pain of high gas prices. In Georgia, the gas tax jumps every time gas prices go up by 25 cents. And at least one U.S. Senator is suggesting that more states start taking transportation funding into their own hands.

The California Department of Insurance has approved a pay-as-you-drive insurance program encouraged by environmental advocates and transportation planners because it provides an incentive to drive less by reducing premiums for low-mileage drivers. Widespread adoption of similar insurance policies could reduce driving in the U.S. by as much as eight percent, according to a Brookings Institution study.