Three Reasons Why Raising The Gas Tax Is A Bad Idea

by Jay Caruso | Watchdog Arena : Gas prices have been falling rapidly as of late, giving some economic relief to those who have seen their wages remain stagnant despite recent job growth. But that relief could come to an end if the federal gas tax is raised.

According to the Energy Department, the average price of gasoline the week of Jan. 5 was $2.21 per gallon, which is over one dollar less than it was a year ago. With as much driving as Americans do, that can be pretty significant savings for families.

In the face of flat wages, it makes little sense to increase taxes. That’s why it is puzzling for some Republicans to advocate raising the gas tax. Tennessee Sen. Bob Corker has led the way, championing a 12 cent increase:“Congress should be embarrassed that it has played chicken with the Highway Trust Fund and allowed it to become one of the largest budgeting failures in the federal government. If Americans feel that having modern roads and bridges is important then Congress should have the courage to pay for it.”Even Charles Krauthammer advocates raising the gas tax, but his plan is worse than Corker. He advocates raising the tax by $1.00, though he says it should be coupled with a reduction in Social Security taxes. Corker too says Congress should reduce other taxes. This gives both of them the opportunity to claim their ideas are “revenue neutral.”

Initially it may seem as though reasonable people would not disagree. But there are several reasons why raising the federal gas tax is a bad idea. Here are three of them:

1) The Highway Trust Fund was established by President Eisenhower for one purpose: to build and repair interstate highways. Nothing more.

These days, the HTF is often used for boondoggle projects that include hiking trails on old rail lines and mass transit projects. It was even used for the infamous Boston “Big Dig,” a project that finished at a cost five times its projection and nine years behind schedule.

2) Raising the gasoline tax doesn’t address the larger problem as it relates to transportation: spending.

Rather than increasing taxes on Americans, Corker and the rest of Congress should get down to the business of reforming all of our federal transportation spending. Congress can privatize airports and air traffic control, looking to Australia, Canada, the UK and Germany as models. Amtrak should be privatized as well, as it can be managed more effectively in the private sector. Congress can save money by eliminating high speed rail projects that are far too localized and don’t provide the necessary routes to keep people from driving less.

3) Despite dire warnings about “structurally deficient” bridges, the number of such bridges has actually declined overall in recent years.

States can more effectively deal with the issue of bridges in those states. If states such as Florida, Oklahoma and Texas (two of which–Florida and Texas–have no income tax) can repair their bridges with already existing funds, other states can do the same. It’s a matter of budget priorities, and states are better equipped to understand that and budget accordingly.

Raising taxes in general is not a solution that should be dismissed completely. However, it should be a last resort as it relates to dealing with issues of budgeting and spending. The United States is currently $18 trillion in debt, and it was climbing even as the government was taking in record revenues.

Senator Bob Corker’s “solution” takes the easy way out. Instead of putting pencil to paper and making tough decisions that will benefit the country in the long run, Corker instead seeks a short term “fix” that will do nothing to solve transportation issues, but instead continue to provide an outlet for members of Congress to divert funds for pet projects in their states and districts.

It’s never good politics for Republicans to raise taxes. In this case, it is bad politics and bad policy.
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Jay Caruso is a contributor of the Watchdog Arena, Franklin Center’s network of writers, bloggers, and citizen journalists.

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