Tax Time: Obama Urged to Raise Gas Taxes to Save Roads

February 27, 2009 at 10:54 am

(Source: Wall Street Journal’s Environmental Capital Blog)

President Obama this week urged the country to boldly confront challenges and take responsibility for the future. Today he was starkly reminded by a Congressionally-appointed commission to do the same when it comes to filling the massive hole in the nation’s transportation budget.

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In a report issued today, the National Surface Transportation Infrastructure Financing Commission said that raising gasoline taxes and taxing miles driven instead of gallons are the only viable ways to get the tattered U.S. road and transit system back on track. The Obama administration just shot down both proposals.

The recommendation was two years in the making—the commission’s mix of transport industry veterans, elected officials and think-tankers has been trying to divine how to raise the extra money needed to maintain and improve roads, buses, and trains.

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ATA argues against mile-based tax

February 27, 2009 at 12:22 am

(Source: etrucker.com)

The American Trucking Associations this week opposed a federal recommendation for a vehicle miles traveled tax, saying it presents privacy concerns.

ATA’s comments come in response to the National Surface Transportation Infrastructure Financing Commission’s report on highway funding challenges. The commission anticipates increasing problems with relying on fuel taxes to support infrastructure improvements because of increasing strides in fuel efficiency.

The commission’s solution – to migrate to a vehicle miles traveled tax – presents privacy concerns that not only are intrusive, but also could lead to new forms of fraud and identity theft, ATA argues. Also, the costs to implement and maintain the program would reduce the amount of funds available for infrastructure, ATA says.

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Tax-by-the-mile rejected by Arizona transportation experts

February 23, 2009 at 9:04 pm

(Source: KTAR.com)

Taxing motorists on how many miles they drive instead of how much gas they buy is an idea that wouldn’t fly in Arizona, according to transportation experts.

The idea was floated by Transportation Secretary Ray LaHood last week, but quickly rejected by President Barack Obama.

LaHood said gas taxes can no longer be expected to fund highway and bridge construction.

Linda Gorman of AAA Arizona said she doubts the idea would have much support in Arizona.

“For Arizona, I would be very surprised, because while, in many instances the country has gone more liberal, Arizona has stayed a little bit more conservative, so it’s typically not a discussion that bodes well in this environment.”

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