Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Streetsblog.net

Could Restructuring the Gas Tax Fund the Transportation Bill?

Would a major change the national gas tax stand a chance after tomorrow's election?

Perhaps so, but not without postponing one of President Obama's key priorities, according to a recent story in the Wall Street Journal. Apparently, state DOTs have been pitching a proposal to Republicans and Democrats to change the structure of the gas tax instead of ending the Bush tax cuts on high earners. By converting the gas tax from today's 18.4 cents per gallon rate into a percentage of sales, it is hoped, the government could gradually increase revenues without imposing an immediate tax increase.

false

This would be a significant departure from current policy when it comes to fuel taxes. Since 1993, the gas tax has been held at 18.4 cents. If the rate had been increased to match inflation, today it would be 27.8 cents, according to Josh Barro at Real Clear Markets.

Sean Roche at Network blog Newton Streets and Sidewalks agrees with the impulse to restructure the gas tax, but says the proposal may not go far enough to bring fuel taxes in line with infrastructure spending:

Adoption of an ad valorem gas tax would be a step in the right direction. "Spending on road construction and maintenance grew almost exactly in line with the economy from 1994 to 2008 - a 102 percent increase." As a consequence, "federal, state and local governments grew road spending faster than road revenues by borrowing more and by diverting general tax revenues to spend on roads."

Ultimately, though, simply stemming the backward march of gas-tax revenue is not enough. We need to make up lost ground. We need to account for the impact of increased fuel economy. And, we need to capture more of the costs of driving from those who drive (or consume goods that have been shipped). One of the virtues of switching to an ad valorem gas tax, though, is that it has no immediate impact, but preps for the future.

It's just math. Federal and state gas taxes are too low.

Elsewhere on the Network today: Lets Go Ride a Bike asks whether aggressive urban cycling guides alienate women and other potential new cyclists. Ecocity Publicity Mobility examines Copenhagen's policy of gradually replacing car parking spaces with bike parking. And WashCycle says that before condemning cyclists for "bad behavior," critics should examine whether safe alternatives are available.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday’s Headlines Transform and Roll Out

Will autonomous vehicles really make us safer? Maybe in the long run, but maybe not in the short run.

May 23, 2025

Talking Headways Podcast: When You Don’t Really Need an Ambulance

Let's talk about the realities of non-emergency medical transportation, long a quiet backwater of urban transport planning.

May 22, 2025

Thursday’s Headlines Are Open 24 Hours

Between an egg surcharge and now EV chargers, late-night diner chain Waffle House looks ready to thrown down with the Trump administration.

May 22, 2025

How A Single Transportation Emergency Can Keep Parents From Achieving Their College Dreams

Abigail Seldin of Scholarship America about the 3.8 million U.S. students who are earning degrees while raising families.

May 22, 2025

Republican Senators Press Attack on CA’s Clean Air Laws

Anyone hoping that Congressional Republican leaders would follow generations of precedent regarding the role of the non-partisan Senate Parliamentarian or the Government Accountability Office (GAO) had a very bad day yesterday.

May 21, 2025

What It’s Like to Grow Up Car-Free In Chicago

"There's a good mix of time where you don't want your parents to drop you off, but you have to, because you don't have your own car," Quetzal said. "I never had that."

May 21, 2025
See all posts