The logic is the same: lower the gax tax, people drive more miles and revenue increases. And, I'm sure, we create more jobs. Ah, well, I can dream can't ? Now, back to business:
The federal gas tax, long used to help states pay for roads and bridges, hasn't been raised since Bill Clinton was president. The prices of asphalt, steel and heavy machinery — like everything else — have been climbing. And Americans are driving fewer miles per year in vehicles that get ever-better gas mileage, meaning there is less revenue.
Now, states that have been loath to increase their state gas taxes are viewing the idea more favorably. Others are changing their gas tax law in ways designed to bring in more money for roads and bridges. …
All the efforts face tough political battles. States have been extremely reluctant to increase the amount they levy at the pump: 24 states haven't raised the gas tax in at least a decade, and 16 haven't done so in 20 years or more, according to the Institute on Taxation and Economic Policy. Some states are trying to avoid protracted fights over hiking the gas tax by linking the gas tax to inflation or making it a percentage of the price paid per gallon. That way, it goes up automatically as inflation or gas prices go up.
Several states where the gas tax is already linked to inflation or fuel prices saw automatic state gas tax hikes this year. The federal gas tax is 18.4 cents a gallon, where it has been since 1993.
via www.usatoday.com
States that haven't raised their gas tax in 10 years have allowed it to fall by about 20% in real terms. States that haven't raised their gas tax in 20 years have allowed it to fall by almost 40% in real terms. I'm sure that over the same time the cost of roads and bridges has not gone down.
Indexing the gas tax to inflation makes the most sense. This simply makes it constant in real terms. Making it a percentage of the gas price unnecessarily causes the variance of the price at the pump to increase, creating uncertainty.
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