Gas Tax too low?

http://www.usatoday.com/money/industrie ... -tax_N.htm

This is a good article showing why funding for roads is not keeping up. Is anybody in favor of another 10 cents/ gallon? Or how would you prefer to fund roads?

"Holiday drivers will pay less than ever at the pump for upkeep of the nation's roads — just $19 in gas taxes for every 1,000 miles driven, a USA TODAY analysis finds. That's a new low in inflation-adjusted dollars, half what drivers paid in 1975. "

"Although the federal gas tax — 18.4 cents per gallon — hasn't changed since 1993, tax collections are down because today's vehicles go farther on a gallon of gas, cutting tax collections while increasing wear and tear on highways. Inflation since 1993 has eroded the value of the tax to maintain roads."

I would venture to call this an unintended consequence of upping the CAFE standards, if I believed that to be the case. On the campaign trail in 2008 we heard about both Cap and Tax and higher CAFE requirements - as well as a few trial balloons floated regarding taxation according to the number of miles driven rather than the gallons of fuel concerned.

No, this is called the set-up. Boo-hoo, we're out of money because we failed to thoroughly think through the consequences of raising the CAFE standards to the federal and state governments. Now, despite promising to not increase any taxes on anyone making less than $250K a year, we'll understandably have to break that promise and raise your taxes. We're sorry you see, but that $700+ Billion that went into the SwindleUs bill really wasn't for shovel ready road, highway and bridge products like we told you it was. It really was a "Let's Make Sure Democrats Get Reelected By Buying Votes" slush fund that we're hoping to empty before November of 2010.

In 1993 there were 194 million passenger vehicles on the road.

As of 2003 (the latest numbers I can find) there were 231 million vehicles on the road in the USA.

That's an increase of 31 million vehicles in 10 years or an increase of 19% paying gasoline taxes.

If we extrapolate those numbers up to 2010 - there are about 53 million more vehicles on the road now than there were in 1993. This would represent an increase of tax revenues of about 46%. Keep in mind that many of those newer cars are smaller than the ones in 1993 - and do far less damage to roads.

Using this inflation calculator http://inflationdata.com/Inflation/Inflation_Calculators/Inflation_Rate_Calculator.asp#calcresults I have determined that the total inflation from Jan, 1993 to Jan, 2010 is 52%. Since they are collecting 46% more in taxes, the real loss of revenue is a mere 6% difference since 1993.

Keep in mind that there was no recession in 1993 - in fact we were in the middle of an internet boom. Todays dollars can probably buy more labor (on an adjusted basis) than we could in 1993 - in fact I know we don't pay road workers 52% more than we did in 1993.

Competitive contracts in 2010 should get more bang for the buck than they did in 1993 - SO - actually the government probably has more buying power in 2010 than it did in 1993.

Don't believe the hype every time some article comes out about needing more of our money - especially when it comes to our government. The fact is that government is the only sector still demanding more of our money in a weak economy - just when American workers can least afford to shell out more. Government needs to learn to cut back - and get more for less - just as every American is forced to make every dollar fo further.

How do I prefer to fund roads? The same way we do now - and without asking the Taxpayer to pay one single cent more in gas taxes.

Suck it up..... Make it work... Get it done!

What happens when we all convert to electric or solar cars? How will they collect their road taxes then?

And wouldn't lighter, more fuel efficient cars damage the roads less?

Part of the mystery of road taxes not fixing infrastucture is that the Feds siphon off those funds to other projects.

The miles driven idea may be over-simplified. Time and weather are possibly 50% of the equation for road/bridge wear. Vehicle weight is a factor too. I still prefer gas taxes to shifting general fund revenues (debt) to Roads, and I believe that was done in 2008 when the gas tax revenues were way down. Not sure where the transportation budget is today, except a lot of the stimulus funds went to roads.

I agree its a no starter, gas tax is very unpopular on both sides. Its more trendy to tax the wealthy.

I am just guessing. but I believe a gas tax hits the poor the hardest. I much prefer the gas tax over road tolls. Much more efficient. And it would seem to inspire fuel economy.