Gas Tax

Against all odds, in a time of high unemployment and Republican attacks on spending, momentum may finally be building for a gas tax increase.

You’ve heard it a thousand times from the highway lobby: Roads pay for themselves through "user fees" -- a.k.a. gas taxes and tolls -- whereas transit is a drain on the taxpayer. They use this argument to push for new roads, instead of transit, as fiscally prudent investments.

So longtime chair James Oberstar is gone from the House Transportation and Infrastructure Committee, and the Republicans in charge now are unlikely to take up a transportation bill as expansive as the one he proposed last year. That doesn’t mean transportation advocates should take the next two years off. In "Moving Past Gridlock: A Proposal for a Two-Year Transportation Law" [PDF], Robert Puentes of the Brookings Institution’s Metropolitan Policy Program argues that there’s a lot to do even in the absence of a long-term reform bill.

If political pandering and bad economic policies have encouraged sprawl and an autocentric transportation system, better incentives can start to correct past mistakes. Here’s one place to start: the National Commission on Fiscal Responsibility and Reform report, released this Wednesday.

Add another vote in favor of increasing the gas tax to pay for infrastructure investment. A few weeks ago, a couple of senators proposed raising it 25 cents. Then the deficit commission came out in favor of a 15-cent hike. And now, three left-leaning think tanks – Demos, the Economic Policy Institute, and The Century Foundation – are calling for a bump in the fuel tax too.

Despite the anti-tax rhetoric of this round of elections, there's been a little flurry of support for raising the gas tax lately. Two senators just proposed bumping it by 25 cents to replenish the highway trust fund. And the National Commission on Fiscal Responsibility and Reform included a gas tax hike in its proposal for reducing the deficit by $3.8 trillion. Their proposal [PDF] is simple.

After yesterday's electoral drubbing, the Obama administration will have to deal with a starkly different Congress when they make their expected push for a multi-year transportation bill early next year. We know that some influential House Republicans, like John Mica, don't necessarily believe that bigger highways will solve America's transportation problems. And we know that some pro-transit voices in Washington originate from the right. But no one expects the GOP ascendancy to make transportation reform any easier.

The success of state-level plans to increase gas taxes is tied to the media's portrayal of the proposals in question, with narratives tied to "crumbling infrastructure" and "economic progress" showing more success than those emphasizing long-term transportation budget gaps, according to a new report released by the University of Vermont's Transportation Research Center (TRC).

While transport reform advocates hailed last week's long-awaited Senate climate bill for directing an estimated $6 billion-plus towards local land use planning and green infrastructure, state DOTs and construction interests criticized the legislation -- suggesting that the measure's sponsors could face stiff resistance from the transportation industry's mainstream despite making concessions to win over all sides.