Why Oppose Gas Tax Increase

See end of article for summary statements in opposition

A Gallop poll about a year ago found that Two Thirds of Americans Oppose Gas Tax Increase.

Screen shot 2014-05-19 at 10.31.34 PMAccording to the report in Newsmax, the survey found that overall sixty-six percent of respondents would vote against a gasoline tax. Few were undecided as twenty-nine percent supported increasing gas taxes. The national survey also indicated that forty per cent of Democrats indicated support, thirty percent of independents and fifteen percent of Republicans. So there is strong bi-partisan opposition.

But while two thirds of the country opposes an increase we see that legislatures and the Congress and some governors continue to advocate for gas or fee increases to finance roads, bridges, and mass transit. Nor has it stopped elements of the Iowa Republican platform committee from floating a change to the Iowa Platform which currently opposes an increase. Reports now indicate they are reconsidering a proposal which stated that “We support a fuel tax increase solely allocated to the Rural Road Fund.”   Apparently some thought no didn’t mean no, and now they do.

Gas taxes for the most part are special levies. We suspect most people assume that the funds raised are morally or legislatively dedicated to transportation infrastructure, or want them to be. Those assurances have been part of many increase proposals and it does not seem that the people are buying into it.  Newsmax goes on to report on the Gallup survey:

“It is not clear whether Americans’ lack of support for this proposal stems from the type, amount or purpose of the tax,” Gallup’s Alyssa Brown said in statement released with the poll. “Americans may be opposed to increasing the price of gas — a necessary commodity for many individuals — during a fragile economy, regardless of how the resulting funds are used.”

Yuh think!

We believe most people do indeed object because we are taxed enough already. It is not necessarily because they disagree with the need for infrastructure repair or even improvement. But they are well experienced with not only governments utter failure to prioritize but its wastefulness, government’s excessive reach by spending money on things it should not be doing, the untrustworthiness of lobbyists, the incentives behind gold braided engineering studies and hype, the pliability of some politicians, the willingness of other politicians to bamboozle the public. People understand politicians chronic affinity for tax and spend politics.  And finally, politicians and other trough feeders do not have a track record of dependability as to their cost estimates or honoring previous statements.

Or maybe that is all just our feeling, a distrust of grand plans, convenient political assurances, big government. For most people it could be they just don’t want a gas tax increase.

It is after all a very visible tax, an additional burden on their ability to make a living or control costs. That is inescapable fact that proponents must deal with. And there is nothing offsetting. Most would agree “roads” are a fundamental or acceptable thing for “government” to attend to. Objections do not overwhelming relate to that.  It is more “what the eff is government doing that they need more money for this basic thing.”

Prioritize and find the money somewhere else.

The threat from tax and spend politicians that  “this tax increase must pass or the roads will crumble before your eyes” should be met with, “you don’t do your job to find better ways to do this and you are fired.” Any government employee who makes such threats against taxpayers ought to be fired. Passive hostility to taxpayer’s concerns and sandbagging by not prioritizing should be met the same way. . Find the money somewhere else.

Any politician who says there is nowhere to cut in a state that has increasing amounts coming into its coffers is a gold plated tax and spender. It is not our responsibility to determine where to cut spending or which category of roads need not be improved. What the people are saying is here is the essence of your new budget – no increased taxes – now find the way to responsibly proceed. If one of them says, “well I guess we will have to take it out of nursing care for the aged” he should be run out of town on a rail.

Nevertheless we will supply a few suggestions off the top our head to the obstinate  — eliminate wind energy subsidies and ethanol mandates. Push to “repatriate” federal tax dollars without restrictions. Reduce regulation, expand business and thereby increase the tax base. Cut all other discretionary spending. prioritize to the extent roads require.

Briefs in opposition to increasing the gas tax

Effect on commerce and ultimately tax base

The greatest burden of a gas tax increase falls on low and middle income people. It is considered a regressive tax. Demand for gasoline is very price inelastic, people cannot not go to work.

The economy is very vulnerable and increasing taxes on a must ace commodity is harmful. Increasing the gas tax will adversely affect commerce and costs of doing business which is passed on to consumers, lowering demand.  The tax base itself will be adversely affected.

The subterfuge of a wholesale gas tax scheme will end up being paid by consumers.

Rural small town people will be hard hit especially but, but given the dependence on the automobile, – all will be hit.

Businesses along Iowa’s borders will be hit order .

Indexing gas taxes to inflation exacerbates inflation.

Notice that no serious effort is made to couple the tax increase with something that will help enable those hardest hit to pay for it — a decrease in the payroll tax.

Except at the most confiscatory levels increasing the gas tax will not significantly affect the environment.

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