Wednesday, June 03, 2009

BOHICA: Federal Gas Tax Going Up

The Feds wanted fuel effiiciency.

The recession depressed miles-driven.

So up go your Federal fuel taxes.

The Obama administration is warning lawmakers that the money for highway construction will run out in August unless Congress approves an infusion of as much as $7 billion.

...A decline in driving that began in late 2007 has reduced federal gas tax revenue, the primary source of Federal Highway Trust Fund money

...Sen. George Voinovich, R-Ohio, said it’s clear that Congress must raise the federal gas tax, which is now 18.4 cents per gallon

The proposed increase? Between 10 cents/ga and 40 cents/ga (more for diesel.)

...fuel taxes are not a sustainable source of revenue over the long term as drivers shift to more fuel efficient vehicles

There's always the possibility of simply not building more roads.

1 comment:

asianbadger said...

Nice to see Voinovich is still carrying the RINO torch...when he's not crying, that is.