The Federal-Aid Highway Act of 1956, along with the Highway Revenue Act (1956) created the Highway Trust Fund (HTF) as a mechanism through which federal gasoline taxes would be used to fund the construction and maintenance of the U.S. highway system. Both the taxes themselves and the authority to place these funds into the HTF expire and must be extended periodically. In 1993, the last increase brought the federal gas tax to 18.4 cents per gallon, 24.4 cents per gallon for diesel. Many point to inflation and increased fuel efficiency as causes of significant shortfalls in the HTF and claim that falling gas prices and the condition of roads in the U.S. make this year an opportune time to increase these taxes.
The latest authorization for the HTF will expire in May and raising the gas tax appears to be generating some support from both Republicans and Democrats . In June 2014, Senators Bob Corker and Chris Murphy introduced revenue neutral legislation to raise both the gasoline and diesel taxes 6 cents per gallon for two years, tying future increases to inflation. Some have suggested instead that raising the gas tax could undermine the economic benefit of low gas prices. Still others have argued we should abolish the federal gas tax altogether, allowing states to handle gas taxes directly and more efficiently fund their own projects.
Should we raise the federal gasoline tax? If so, by how much?
Drivers today are paying about $3.00 in federal taxes on every tank of gas we buy. That’s the same amount we were paying way back in 1993, despite the fact… Read more »
There are many reasons to increase taxes on diesel and gasoline. The previous comment made a strong case for increasing the current road building and maintenance tax. But there are… Read more »
@Paul Scott: For estimates of the human health costs attributed to motor vehicle use of energy, look at The Hidden Costs of Energy published in 2010 by The National Academy… Read more »
Excerpt from NEP white paper: Introduction of alternative fuel vehicles will run up against the declining ability of our crumbling highways to serve them. Alternative fuel vehicles will need to… Read more »
On the NEP white paper, as quoted by Mr. Klaus: It’s unquestionably a good thing that analysts and lawmakers are studying Vehicle Miles Traveled taxes (VMT taxes) and thinking about… Read more »
Federal investment in the nation’s surface transportation network has been accomplished with 32 short term measures over the last 6 years, and funding levels have long been inadequate to keep… Read more »
I agree with you that VMT is a long term solution. In the transportation sector section of the NEP white paper I not only discuss where we are going but… Read more »
As one of those who “have argued we should abolish the federal gas tax altogether, allowing states to handle gas taxes directly and more efficiently fund their own projects“, I… Read more »
The federal government provides roughly a quarter of highway and transit infrastructure funds—mostly via the gas tax. State and local governments pick up the rest of the tab, primarily with… Read more »
An argument could be made that raising the gas tax is a ‘user fee’ … not a tax. Virginia did that when they set fees for vehicles licensed in the… Read more »
Gas taxes are among the most regressive of social policies, as are any taxes on energy. Raising the price of energy has been a theme of the current administration, and… Read more »