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dboat
01-02-2009, 09:53 AM
the italicized portions are my emphasis.

WASHINGTON (AP) - Motorists are driving less and buying less gasoline, which means fuel taxes aren't raising enough money to keep pace with the cost of road, bridge and transit programs.

A federal commission created by Congress to find a way to make up the growing revenue shortfall in the program that funds highway repairs and construction is talking about increasing federal gas and diesel taxes.
A roughly 50 percent increase in gasoline and diesel fuel taxes is being urged by the commission until the government devises another way for motorists to pay for using public roads.
The 15-member National Commission on Surface Transportation Infrastructure Financing 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.
In a report expected in late January, members of the infrastructure financing commission say they will urge Congress to raise the gas tax by 10 cents a gallon and the diesel tax by about 12 cents to 15 cents a gallon. At the same time, the commission will recommend tying the fuel tax rates to inflation.
The commission will also recommend that states raise their fuel taxes and make greater use of toll roads and fees for rush-hour driving.
Although the cost of gasoline has dropped dramatically in recent months, such tax increases (http://search.breitbart.com/q?s=tax%20increases&sid=breitbart.com) could be politically treacherous for Democratic leaders in Congress. A gas tax hike was one of the reasons they lost control of the House and Senate in the 1994 elections. President-elect Barack Obama has expressed concern about raising fuel taxes in the current economic climate.
But commission members said the government must find more road and bridge building money somewhere.
"I'm not excited about a gas tax increase, but the reality is our current gas tax doesn't pay for upkeep of the system we have now," said Adrian Moore, vice president of the Reason Foundation, a libertarian think tank in Los Angeles, (http://search.breitbart.com/q?s=Los%20Angeles&sid=breitbart.com) and a member of the highway revenue commission. "We can either let the roads go to hell or we can pay more."
The dilemma for Congress is that highway and transit programs are dependent for revenue on fuel taxes that are not sustainable. Many Americans are driving less and switching to more fuel-efficient cars and trucks, and a shift to new fuels and technologies like plug-in hybrid electric cars will further erode gasoline sales.
According to a draft of the financing commission's recommendations, the nation needs to move to a new system that taxes motorists according to how much they use roads.
"Most if not all of the commissioners have a strong belief and commitment that we need a fundamental transformation of the current system," said commission chairman Robert Atkinson, president of the Information Technology and Innovation Foundation, a technology policy think tank in Washington.
A study by the Transportation Research Board (http://search.breitbart.com/q?s=Transportation%20Research%20Board&sid=breitbart.com) of the National Academies (http://search.breitbart.com/q?s=National%20Academies&sid=breitbart.com) estimated that the annual gap between revenues and the investment needed to improve highway and transit systems was about $105 billion in 2007, and will increase to $134 billion in 2017 under current trends.
Projected shortfalls in revenue led the National Surface Transportation Policy and Revenue Study Commission, in a report issued in January 2008, to call for an increase of as much as 40 cents a gallon in the gas tax, phased in over five years.
Charles Whittington, chairman of the American Trucking Associations, which supports a fuel tax increase as long as the money goes to highway projects, said Congress may decide to disguise a fuel tax hike as a surcharge to combat climate change.
Transportation is responsible for about a third of all U.S. carbon emissions created by burning fossil fuels. Traffic congestion wastes an estimated 2.9 billion gallons of fuel a year. Less congestion would reduce greenhouse gases (http://search.breitbart.com/q?s=greenhouse%20gases&sid=breitbart.com) and dependence on foreign oil.
"Instead of calling it a gas tax, call it a carbon tax," Whittington said. Bottlenecks around the nation cost the trucking industry about 243 million lost truck hours and about $7.8 billion per year, according to the commission.

Shiner1
01-02-2009, 10:59 AM
Yep, saw this on the AM news today. I'm not suprised.:rolleyes:

gbgary
01-02-2009, 11:06 AM
i'll bet it's a lie. demand hasn't gone down. if anything, with the much lower cost of gas, people are driving more. :mad:

Ohmsby
01-03-2009, 08:09 AM
http://www.foxnews.com/story/0,2933,475507,00.html

Oregon wants to tax the miles you drive

dboat
01-03-2009, 08:13 AM
http://www.foxnews.com/story/0,2933,475507,00.html

Oregon wants to tax the miles you drive


I just saw that... pretty soon they will want to tax the air you breathe.. :mad:

Ohmsby
01-03-2009, 08:21 AM
Does this logic suggest I will no longer have to pay the school district portion of my property tax. I have no kids.

dboat
01-03-2009, 08:28 AM
Does this logic suggest I will no longer have to pay the school district portion of my property tax. I have no kids.

there are some states that do follow this policy, like Indiana.. some senior areas of the country, as in Arizona, the seniors have gotten together and refused to raise school taxes, so the families with children have left since they were causing a financial hardship on the schools.

we agree though that those without kids, shouldnt pay school taxes..

Dana

Silver_2000
01-03-2009, 09:16 AM
the story is that demand has gone down
I find it hard to believe that the gas demand from the economies in india and china that people were blaming for the escalating demand has changed much

I do think that demand has slowed here - everything seems to have slowed

dboat
01-03-2009, 09:25 AM
the story is that demand has gone down
I find it hard to believe that the gas demand from the economies in india and china that people were blaming for the escalating demand has changed much

I do think that demand has slowed here - everything seems to have slowed

it was speculation that drove it that high.. there has been some drop off in demand as well.. however, our entire tax system should reflect what, we as a country, not what our politicians, want to have to serve us. Unfortunately, there are some big schisms in those thoughts, such as, should I have to pay school tax if I dont have kids? or if my kids dont attend public school? plus there will be more momentum as time goes on to have a flat tax rate for all above the poverty level of income. The impact on our economy would be HUGE and positive. A lot of underground transactions that are illegal would be brought into the system. The real issue (IMHO) is that as long as we have full time professional politicians, we will continue to have huge problems. I say make them part time and pay them $40k per year without benefits. Also, make them live by the very laws they pass. This alone would make for some huge changes and you would see many politicians leave Washington to have to actually "earn" a living.

Dana

Ohmsby
01-03-2009, 09:39 AM
I could support the "Fair Tax" bunch I realize it is not a silver bullet but it certainly would satisfy a lot of the issues we are faced with

Silver_2000
01-03-2009, 09:47 AM
it was speculation that drove it that high.. there has been some drop off in demand as well.. however, our entire tax system should reflect what, we as a country, not what our politicians, want to have to serve us.
Dana

I think that the speculators that caused these issues should be prevented some how from continuing to manipulate the markets this way - One of the few times Ill say that capitalism should be monitored and controlled

Ohmsby
01-03-2009, 09:54 AM
I heard something interesting insight yesterday. A real estate guru buddy of mine said that he knew trouble was about when investors were flipping properties to investors before they were ever built. Especially in Florida

I would surmise that oil also suffered some of the same ill. I agree with Doug one of the few areas that need some type of regulation with respect to speculative run ups