With currently low gas prices, Congress should take advantage of the opportunity to raise the federal gas tax and pay for road improvements. Since the beginning of the Interstate Highway program in the 1950s, the federal gas tax has been used as a source of revenue for the Highway Trust Fund, which is responsible for new transportation projects as well as maintaining current roads.
Unfortunately, the federal gas tax isn’t adjusted along with inflation and hasn’t been increased since it was set at 18.4 cents per gallon in 1993. This level of revenue simply is not sufficient to maintain the existing roads across the country without even considering expanding or adding additional roads. According to the American Society of Civil Engineer’s 2013 Infrastructure report card, roads across the country received a "D" grade and the country’s bridges got a stunning "C+."
The current revenue for the Highway Trust Fund has left the country’s roads in a horrid state of disrepair, but — given the recent fall in gas prices — now is a perfect time for Congress to increase the federal gas tax and, more importantly, tie future increases to inflation. Without any tax increase, the Highway Trust Fund “will be short more than $160 billion over the next 10 years.” Congress will be forced to pass a continuing series of stopgap funding bills that will divert funds from the general fund to complete a limited amount of road maintenance.
Understandably, people generally aren’t in favor of tax increases, but, in some cases, the taxes are necessary and will go directly to pay for critically important projects. As a result, there have already been signs of bipartisan support in Congress for a gas tax increases. According to Politico, Sens. Bob Corker, R-Tenn., and Chris Murphy, D-Conn., recently proposed a plan that “would hike gasoline and diesel taxes by six cents in each of the next two years, for a total increase of 12 cents. That would raise roughly $164 billion over the next decade, filling the highway fund’s revenue shortfall.”
Corker also said "he was fed up with Congress coming up with short-term fixes while the nation’s roads and bridges continued to crumble," according to the article. With a 12-cent increase, the tax would rise to 30 cents, equivalent to if it had been adjusted along with inflation over the past 21 years. But even a small increase would go a long way toward funding infrastructure improvements. Additionally, the two-year tax rollout combined with the general fulgurations in gas prices would mean that most people wouldn’t notice the impact in the price they pay at the pump.
While the most important thing that the gas tax does is fund the Highway Trust Fund, there are also other side benefits that help justify the tax increase. When gas prices are low, consumers are happy to buy large, gas guzzling cars, but as prices rise, consumers quickly shift towards more fuel-efficient cars.
With gas prices so low, it’s logical to assume that consumers will transition back to buying less fuel-efficient cars, a decision that will haunt them when gas prices inevitably rise again. An increase in the gas tax would not only improve the country’s roads, but would serve as an incentive for consumers to continue to buy fuel-efficient cars.
Congress has a perfect opportunity to act while gas prices are low to give the Highway Trust Fund the resources that it needs to maintain the country’s roads. Such a tax increase would benefit everyone across the country and is a worthwhile and productive tax.
Reach the columnist at zjosephs@asu.edu or follow @zachjosephson on Twitter.
Editor’s note: The opinions presented in this column are the author’s and do not imply any endorsement from The State Press or its editors.
Want to join the conversation? Send an email to opiniondesk.statepress@gmail.com. Keep letters under 300 words and be sure to include your university affiliation. Anonymity will not be granted.
Like The State Press on Facebook and follow @statepress on Twitter.
