Time to Triple the Gas Tax?

The August collapse of the I-35 bridge in Minneapolis (the result of design error according to an investigation) has drawn attention to the state of America’s infrastructure. Reports about the need to address crumbling roads and bridges abound and will increase the attention given to the recommendations of the National Surface Transportation Policy and Revenue Study Commission:

A bipartisan commission created under the 2005 highway law released its long-awaited report Tuesday, recommending an increase of up to 40 cents per gallon in the federal gasoline tax and renewing a contentious debate in Congress… The 12-member commission, called the National Surface Transportation Policy and Revenue Study Commission, recommended almost doubling the federal gasoline tax over the next five years, boosting it in increments of 5 cents to 8 cents per year. The rate would be indexed thereafter to the rate of change in construction costs, according to an executive summary of the report.

The federal gas tax is currently 18 cents per gallon, and Congressional Democratic leaders have called for an increase. But calling for something and actually scheduling a vote are two different things. And this being an election year, no vote on a gas tax increase is forthcoming–that will wait until next year, when a Democratic president may be more open-minded than President Bush has been. But in evaluating the need for additional funds, it’s worth reviewing the Commission’s final report, as well as the good points made by commission members who dissented from the majority views. Wasteful spending on low priority projects is cited as a significant problem, as well as an overly-broad definition of projects that merit funding. The dissenters say that the current system is broken and doesn’t warrant expansion. Whether the financing system is fatally flawed or not, it’s good to remember that many of the elected officials now calling for tax increases don’t think that our infrastructure needs are important enough to reduce pork-barrel spending. Their actions make pretty clear that many in Congress are more interested in raising taxes than in actually addressing infrastructure needs. Keep that in mind when you read the scare stories.

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