Why a $0.25 Federal Gas Hike Is a Terrible Idea

in #economics6 years ago (edited)

Motorists should be skeptical of gas tax increases until policymakers stop diverting funds to unrelated government programs.

Source: President Trump Reportedly Wants to Double the Federal Gas Tax - Foundation for Economic Education

Given the vast number of taxes in existence, it's hard to justify any new or increased taxes even if you don't believe that taxation is theft. Having said that, if there is going to be a tax, a tax close to a pure user charge, like a gas tax to pay for roads, would seem to make sense. But there are two problems here: First, states mostly take care of their own roads as they should. The Federal government shouldn't even be involved. Second, gas taxes, like most other user charge-like taxes, almost always end up being significantly diverted to other things as most gas taxes are now.


Sponsored ( Powered by dclick )
Winners for the Guess the Color Game Day 115 by Mermaidvampire

Hello, Steemheads! It's time to share the rewards fo...

logo

This posting was written via
dclick the Ads platform based on Steem Blockchain.

Sort:  

I am fine with any gas taxes as long as they go directly to roadway infrastructure and are not siphoned off into a the general fund.

But that's part of the problem. That isn't what happens. Currently, about 20% of Federal gas tax is diverted to uses other than roads. This is true for the vast majority of state gas taxes as well (and many of those percentages are much higher). In addition, since states take care of the roads, why have the Federal government as a middle man? States have the power to alter their own gas taxes whenever they want.

Coin Marketplace

STEEM 0.19
TRX 0.16
JST 0.031
BTC 61744.65
ETH 2678.63
USDT 1.00
SBD 2.59