Gas Tax Quandary Edition
Fuel efficient vehicles are a good thing. They emit fewer pollutants, cost less to operate, and they help reduce our dependence on foreign oil. While there are drawbacks such as lack of power and towing capability, it seems the benefits for the average driver outweigh the negatives.
However, there is one major glaring issue that fuel efficient cars and trucks present: Lower gas tax revenues.
So what, right? Don’t our state and federal governments collect enough taxes? Well, maybe but the gas tax they collect, especially from the state governments, is allocated to build and improve our road infrastructure.
Nobody likes potholes or other road issues such as those pesky failing bridges that span enormous waterways. Imagine there was no revenue to deal with these issues? Imagine the bridge you take to work every day collapsing beneath you.
So now what? While some states are thinking about charging drivers by the mile, others are pondering raising their gas taxes quite a bit. While these ideas may resolve the situation, Virginia’s governor wants to take a very different tack; he wants to eliminate the gas tax altogether: http://business.time.com/2013/01/16/virginia-is-worried-cars-are-becoming-too-fuel-efficient/#ixzz2IofDoIEo
Huh? What would that solve? Actually, quite a bit. If gas were cheaper, motorists would drive more and buy more goods according to economists. Additionally, the cost of these goods, which are delivered by gas-guzzling trucks, would decrease in price. This is all very good for a state’s economy.
But what about the gas tax for road infrastructure? That would be covered by a modest increase in state sales tax from 5 percent to 5.8 percent. Critics argue that consumers can’t afford this kind of increase but it’s still cheaper than most states’ sales tax rates.
Critics also say that it’s unfair to those who don’t drive. Why should they have to subsidize roads for those who do drive? To this I say don’t get me started on what taxpayers subsidize who don’t benefit from the services they’re funding. The same argument could be applied to those who don’t have children who pay property taxes to fund schools.
Virginia’s governor also wants to impose a $100 annual fee on electric cars because they don’t use gas yet still enjoy the benefits of public roadways. I have mixed feelings about this. Those who drive EVs are environmentally responsible and are helping to ease us off foreign oil. Yet they can drive in carpool lanes by themselves and likely already received state and federal tax breaks. Should they have to pay a yearly tax?
What are your thoughts?
Post your comments at http://laurenfix.blogspot.com/
My Final Thought:
All I can say is: Lucky Jay leno!
http://jalopnik.com/5978819/jay-leno-gets-to-be-first-non+gm-person-to-drive-the-new-corvette-stingray
Love your car! See you next week!
--Lauren Fix
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