GOP senator leaves wiggle room on gas tax

[cpzilliacus]

TheHill.com: GOP senator leaves wiggle room on gas tax

Sen. Jim Thune (R-S.D.) signaled Sunday that Republicans might be open to negotiating increasing the gas tax in order to pay for the highway infrastructure spending bill that expires in May.

In an interview on "Fox News Sunday," Thune said that while he is opposed to increasing the gas tax, lawmakers will need to "keep all options" available when they return to Washington this week.

"I don't favor increasing any tax," Thune said. "But I think we have to look at all options."

[golden eagle]

This may never happen because of two things:

1. The GOP mantra of "no new taxes" will never be believed anymore
2. What happens when gas prices spike again?

[jeffandnicole]

1. The GOP mantra of "no new taxes" will never be believed anymore

No one believes it now.

[jakeroot]

The other option is to track the movements of drivers like Oregon and Washington are going to implement, and charge drivers by the amount they drive. While I think it's a rather fair way to pay for road improvements (thy who hurts the road most contributes the most), I'd rather see a gas tax increase. It's way simpler to implement, most likely cheaper to implement, and reduces taxes in other areas (potentially).

In areas that are heavily liberal (like where I live) a lot of people yearn for a political system more akin to some of the Nordic countries. Let's see how much they want a Nordic political system when they see a Nordic political system gas tax.

1. The GOP mantra of "no new taxes" will never be believed anymore

No one believes it now.

Jay Inslee, the Democrat governor of Washington State, said he wouldn't raise taxes when he became governor. In the next political session, he is proposing to raise taxes.

My point being, it's not a left-right issue, most politicians know very well that the easiest way to gain money is to raise taxes. They might all campaign with a "I won't raise taxes" mantra, but it rarely ever sticks.

[dfwmapper]

Hoping that someone with a brain points out that cars do essentially no damage to the road as compared to large trucks (road damage is tied to the fourth power of the axle weight). Shifting the tax burden to large trucks therefore raises the prices of goods shipped by truck, therefore ultimately resulting in a tax that disproportionately harms the poorest of people by raising prices on basic necessities like food and clothing. That should set the loudmouths on the liberal side off in opposition. Not to make it a political issue, but it's everything they stand against.

Also, holy civil rights issues with the government knowing everywhere you go. That sound you just heard was every ACLU lawyer simultaneously popping a boner at the thought of going before SCOTUS and arguing the first and fourth amendment violations that tracking creates and getting it struck down.

[hbelkins]

On the state level here in Kentucky, years ago our legislature made the decision to tie the gas tax to the wholesale cost of gas, instead of leaving the rate at a permanent, fixed level, because they feared as prices rose, consumption would go down and thus, tax revenues would decrease. That policy has come back to bite them because the tax is going down as prices decrease. The tax went down Jan. 1 by 4.3 cents, based on the wholesale price back in October; it will likely go down again for the next quarter because prices in January are even lower than they were in October. Because the Road Fund has already taken a big hit and will likely take another one in a couple of months, there's a little noise being made about doing something about the gas tax, but there's already opposition forming.

Of course, none of the stations around here are reflecting the 4.3-cent drop in the tax in their at-the-pump prices, so that tax decrease is just profit for them.

[PHLBOS]

On the state level here in Kentucky, years ago our legislature made the decision to tie the gas tax to the wholesale cost of gas, instead of leaving the rate at a permanent, fixed level, because they feared as prices rose, consumption would go down and thus, tax revenues would decrease. That policy has come back to bite them because the tax is going down as prices decrease. The tax went down Jan. 1 by 4.3 cents, based on the wholesale price back in October; it will likely go down again for the next quarter because prices in January are even lower than they were in October. Because the Road Fund has already taken a big hit and will likely take another one in a couple of months, there's a little noise being made about doing something about the gas tax, but there's already opposition forming.

Similar happened in Massachusetts during the very early 80s when the state gas tax went from a fixed rate to a percentage.  While more money came in initially; when gas prices came literally crashing down several years later (something that nobody envisioned to happen back then), revenue collections dropped as well.  As a result, the state gas tax was changed back to a flat but higher rate than what it previously was.

[kkt]

Perhaps the gas tax should be indexed to construction costs, since that's what the gas tax should mostly be paying for.

[roadman65]

Glad that someone brought this up.  I heard that on the radio this particular proposal as a result of the lower gas prices.  I did not catch who it was, but nonetheless our government at work for us.  Will not let us enjoy the low prices after almost 10 years of hell paying so much for gas is totally cold.

To make it an idea brought forward by a GOP person who is supposed to be from a party known to not raise taxes is even more crazy to hear, but that is another story.  However it is all ridiculous for anyone to do something to us when gas prices soaring high for so long has complicated many of our lives not too mention lose a lot of our paychecks to fill up our tanks. 

It is plain control!

[Chris19001]

So we couldn't increase the tax previously because gas prices were too high..  Now it can't be raised because we have to be able to enjoy the price after the gas prices were previously so high..? 
I can't voucher for where you guys live, but here in southeast PA our roads/rails are in lousy shape and the only significant reason is lack of political will on both sides of the aisle..  If its not blaming it on union construction costs, it's blaming it on the tax itself.. 
I still can't comprehend how we wound up with a system at all with this mentality.

[wxfree]

I red something somewhere, I think it may have been a Texas Transportation Institute study, that included as one option not "raising" the tax, in that there would be no set increase, but indexing it to construction costs.  The funds brought in above the level brought in by the current rate would be pledged to repay future bonds.

On a somewhat related question, I'd like to know what people who know more about it than I think of road debt.  It involves, of course, adding interest costs to the total cost.  On the other hand, project costs can increase substantially when the project is delayed, even for a few years.  In general, is it more efficient to build (or rebuild) the road now, at today's prices, and pay the interest on debt, or to wait until you have the money and pay an inflated, possibly much inflated, price up front?  If you have an answer, include or exclude, as you see fit, the societal benefit of getting the road opened earlier.

[Chris19001]

Well, we have record low interest rates at work right now.  If the state DOT hasn't already been downgraded, I can't see how it would EVER be any cheaper than it's been for the past few years. Bondholders are asking for extremely low returns on debt when compared to historical averages.  Once inflation kicks in (should be in the next year or two) and the Fed increases their benchmarks, we'll be scratching our collective heads wondering why we didn't do more with the low rates..  That isn't an excuse for pulling a China and financing every pie-in-the-sky infrastructure scheme that comes along, but we'll really shooting ourselves in the foot if we think things will become "more affordable" sometime in the future.  (not being political)

[roadman65]

So we couldn't increase the tax previously because gas prices were too high..  Now it can't be raised because we have to be able to enjoy the price after the gas prices were previously so high..? 
I can't voucher for where you guys live, but here in southeast PA our roads/rails are in lousy shape and the only significant reason is lack of political will on both sides of the aisle..  If its not blaming it on union construction costs, it's blaming it on the tax itself.. 
I still can't comprehend how we wound up with a system at all with this mentality.

Simple solution.  Cut pork barrel spending.

[Brandon]

So we couldn't increase the tax previously because gas prices were too high..  Now it can't be raised because we have to be able to enjoy the price after the gas prices were previously so high..? 
I can't voucher for where you guys live, but here in southeast PA our roads/rails are in lousy shape and the only significant reason is lack of political will on both sides of the aisle..  If its not blaming it on union construction costs, it's blaming it on the tax itself.. 
I still can't comprehend how we wound up with a system at all with this mentality.

Simple solution.  Cut pork barrel spending.

Not as simple as one would think.  One man's pork barrel is another man's bringing home the bacon.  That said, I can think of things to cut, and it would piss off people on both sides of the aisle.

[SD Mapman]

To make it an idea brought forward by a GOP person who is supposed to be from a party known to not raise taxes is even more crazy to hear, but that is another story.

Our GOP governor has a similar plan. (Here)

Must be a South Dakota thing.