People Driving Less? Increase Taxes!!!

mad-max-2 Here’s why the government has the lowest approval rating in history.  Check this out – Congress convened a panel, called the National Commission on Surface Transportation Infrastructure, to review the current Federal Gas tax, which is currently 18.4 cents a gallon on gas, and 24.4 cents a gallon on diesel.  Their findings?  People are driving less.  Consequently, revenue from gas sales are lower, and the result is fewer dollars to pay for road maintenance and repair.  So their recommendation?  Raise gas tax by 50%!

A 50 percent increase in gasoline and diesel fuel taxes is being urged by the commission to finance highway construction and repair until the government devises another way for motorists to pay for using public roads.

The National Commission on Surface Transportation Infrastructure Financing, a 15-member panel created by Congress, is the second group in a year to call for increasing the current 18.4 cents a gallon federal tax on gasoline and the 24.4 cents a gallon tax on diesel. State fuel taxes vary from state to state. – [Source CNBC]

So let’s understand this a bit better.  People are using less gas.  Why?  Because of one of two reasons – 1) CAFE standards, implemented by Congress, which is requiring higher fuel efficiency, and 2) the higher price of gas, which is much lower than it was, but still not below $1.00 a gallon, and is still a partially a result of the current tax.  Both the policies encourage less gas usage, and subsequently, lower revenue.   Taxing will only encourage less consumption…  Am I really the only person in America that realizes this?

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Filed under common sense, Economy, Energy, Government, Taxes

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