Gas Tax Broken; But What Should Replace It?

[lektrode]

this one should be good....

http://online.wsj.com/article/SB1000...194372886.html

does it make sense for federal fuel taxes to be a flatrate number of pennies per gallon?
or a % of the price/gal?

would seem to be a no brainer - esp since some states have done assinine things like jack up registration fees rather than up the gasoline tax to make sure it does what its supposed to do:
provide a funding mechanism to build/maintain the transportation infrastructure

instead of being raided for whatevah the 'crisis du jour' of the moment is....

By MICHAEL TOTTY

The gasoline tax is running on fumes.


For decades, the excise tax on gasoline and diesel fuel has been the main source of funds for building and maintaining the nation's roadways. It has paid for most of the four million road miles currently in service.


But now there is agreement across the political spectrum that the gas tax is broken and needs to be replaced, or at least overhauled. The problem is twofold: First, the tax has failed to keep up with the rising cost of highway construction and repair. And second, improved fuel economy and the rise of hybrid and electric vehicles means that more driving won't be matched by higher gasoline sales, and that how much people pay for the roads won't necessarily reflect how much they use them.


"The gas tax served our country extremely well as long as the amount that people drive continued to go up and people continued to get lousy gas mileage," says Pete K. Rahn, leader of the national transportation practice at HNTB Corp., a Kansas City, Mo., architectural, engineering and construction firm. Now, he says, "we do not have a sustainable way of paying for our transportation system."


Transportation experts have been warning for at least a decade about the looming crisis in the motor-fuels tax. The federal tax, at 18.4 cents for gasoline and 24.4 cents for diesel, hasn't changed since 1993. As a result, the tax buys about half the concrete, steel and other materials it did 20 years ago.


Some states have managed to increase the tax, but many have had to increase their reliance on other sources—registration fees, sales taxes and general-revenue funds—to meet their transportation needs.
Looking ahead, the Congressional Budget Office predicts gas-tax revenue will fall by a cumulative $57 billion over the next 11 years thanks to a scheduled increase in federal fuel-economy standards. That's a 13% cumulative reduction in projections for the trust fund over that period.
It's true that Congress could just raise the gas tax. But the tax is already unpopular, and lawmakers have resisted repeated efforts to increase it. In fact, amid high gasoline prices, many politicians have called for cutting the tax to give drivers some relief at the pump.

MORE: http://online.wsj.com/article/SB1000...194372886.html

once again, more ASSININE 'solutions' from the re-election queens... right up there with cutting FICA 'temporarily' as the socsec/medicare system melts down (and they say you cant make this stuff up ???)

in my theory/philosophy of How Should The Gov Pay for Itself... (with USER FEES my fave)
i say: the tax should be a % of price/gal, with a FLOOR/base-level revenue-mechanism that raises it when the gasoline price per gal drops.

will it cost us more in the SHORT TERM?
well hell - look at what its been costing us as the roads/bridges crumble.
since the gutless-wonder re-elect-ME crowd cant seem to find the will to honestly deal with this issue, we need some kind of automatic 'funding enhancement' to make sure things stay maintained, when the beltway aristocracy cant/wont make the decision and kicks the can.

[LorenS]

Re: Gas Tax Broken; But What Should Replace It?

The gas tax is not broken. Our nation is broken. Our legislature has no spine and the citizens want someone else to pay for their needs.

There is no reason the gas tax can't be adjusted on a annual basis to make up for inflation.

A car is no good without roads.

[don]

Re: Gas Tax Broken; But What Should Replace It?

Speaking of 'indirect taxation' when I registered my Cali car in the Sunshine State I had to sell and buy it from myself. That's right. Sold the car to me, then bought the car from me. To transfer title cost me 300 bucks. Nice, eh. (if only I could have buried some dealer largess in the transaction) Registration was an agreeable $70 or so.

[lektrode]

Re: Gas Tax Broken; But What Should Replace It?

....had to sell and buy it from myself. That's right. Sold the car to me, then bought the car from me. To transfer title cost me 300 bucks. Nice, eh. ....

huh?
was it new?

http://www.flhsmv.gov/dhsmv/newflres.html sez:

You bought it less than six months ago
If the motor vehicle was purchased and used less than six months in another state, territory of the United States or the District of Columbia, the full amount of the six percent Florida sales or use tax and local discretionary sales surtax is required. However, that is offset by the sales tax you paid in the prior jurisdiction. For example, if you owe 6% to Florida, but you paid 4% to another state, you will only owe 2% to Florida.

altho http://www.flhsmv.gov/dmv/faqmotor.html#7 sez:

Why am I paying a $225 fee for "new wheels?" This is not a new car. The term "initial registration" is confusing.

The term "new wheels" does not appear in the law. Section 320.072, Florida Statutes, requires a fee of $225 to be imposed upon the initial application for registration on certain motor vehicle registration transactions. Whether the vehicle is new or used doesn't matter. Basically, the fee is due on any private-use automobile, any lightweight truck, or any motor home unless the vehicle being registered is a replacement for a vehicle that has been disposed in the same category of vehicles.

well... i guess thats how they deal with the influx of new refugees who 'arrive alive and ready to drive' ;)

but... i'd consider yerself 'lucky' that yer in the sunshine state.
they wanted nearly 300bux last year for my 22yo chevy out here.
i'm renting now... needed a new car anyway and rental still hasnt added up to what i wouldve paid had i just kept doing/driving what i had been... (and i got a/c that works now...)

but i guess thats the funny thing/problem with just bangin up the rates?
if there's any option, most will take door #2
guess that explains the 'great exodus' eh?
laffer sure must feel vindicated.

[don]

Re: Gas Tax Broken; But What Should Replace It?

No, it was not new. Had 74,000 on it - a 2006.

[evangellydonut]

Re: Gas Tax Broken; But What Should Replace It?

I guess that explains why the city of San Francisco is buying bridge building material from China... perhaps same source that resulted in something like 7 bridge collapse in as many years... lol remind me to never drive on that bridge...

[shiny!]

Re: Gas Tax Broken; But What Should Replace It?

South Africa has a fee tacked on to every gallon (litre?) of gasoline sold that pays for a liability insurance pool so that every car is automatically insured. No uninsured cars or drivers there. Car owners can pay extra for private collision and comprehensive insurance, but every car on the road is automatically insured for liability.

Whereas here in the States, there are so many uninsured and underinsured drivers that we all pay a lot more for insurance. My little 2012 Hyundai Accent's insurance costs $70/month- a big chunk of that is for uninsured/underinsured motorist protection. Registration costs$250/year. This completely obliterates any savings I get from better MPG over my old '86 Crown Vic.

I'd like to see liability insurance paid for at the pump.