Why We Do Not Need A Gas Tax Increase

Why We Do Not Need A Gas Tax Increase

The Wall Street Journal challenges the notion that an increase in gas tax is needed to address the paucity of funds held by the Highway Tax Fund (HTF). In a recent article, this periodical notes, “Federal spending on such side projects has increased 38% since 2008, while highway spending is flat. Here’s what the politicians won’t say: Simply using the taxes that are supposed to pay for highways to, well, pay for highways makes the HTF 98% solvent for the next decade, no tax increase necessary.” The article even dispels the tall tale “…that U.S. roads and bridges are ‘crumbling,’ to use the invariable media description. Federal Highway Administration data show that the condition, quality and safety of U.S. surface transportation are steadily improving. The Chicago Federal Reserve Bank noted in a 2009 paper that roads have ‘indisputably’ improved over the last two decades and that ‘the surface of the median interstate highway mile is suitable for superhighway speeds not typically permitted in the United States.’”

Indeed, strong evidence exists to counter the arguments of those who insist that increase in gas taxes is essential for repair of deteriorating roads and bridges. The economy is sluggish, and many Americans remain out of work. The time is not ripe for burdening Americans with another tax.

 

Click here to read the full Wall Street Journal article.

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