Gas Tax

In its second Earth Day release, the U.S. DOT today unveiled a 600-page analysis of transportation emissions mandated by Congress in the 2007 energy bill. In addition to weighing in on many potential tactics for limiting transport’s contribution to the changing climate, the document notably recommits the Obama administration to that goal at a time … Continued

The several dozen transportation industry groups that raised questions about where the upcoming Senate climate change bill would send proceeds from its new "linked fee" on carbon fuels can stop worrying -- because it looks like the legislation won't contain any new tax on motor fuels.

To a certain extent, hope springs eternal in federal transportation circles. Even as state DOTs and metropolitan planning organizations operate under the latest in a series of extensions of the 2005 law that governs road, transit, and bike-ped spending, few are willing to envision a future in which new legislation doesn't pass by next year.

As Tax Day prompts a rush of political rallies and media coverage, it's worth looking back at the history of the federal levy that helps pay for transportation projects: the gas tax.

Eight Democrats yesterday joined nearly the entire transportation universe, from road-builders to transit advocates, to warn the three Senate authors of a new climate bill against raising gas taxes without using the money for infrastructure. Their message, translated from the often impenetrable language of Washington: Imposing new fuel fees that are not routed to transport projects could torpedo the next long-term federal bill -- which is already on life support.

As Sens. John Kerry (D-MA), Lindsey Graham (R-SC), and Joseph Lieberman (I-CT) prepare to unveil a new climate change measure that includes a tax on motor fuels, eight of their colleagues are urging the trio not to forget local transportation planning -- and warning that any new gas tax should be used to help pay for a new federal infrastructure bill, not redirected for other purposes.

House infrastructure committee chairman Jim Oberstar (D-MN), facing steep political odds in his push to pass a new six-year federal transportation bill this year, has begun to pitch an outside-the-box solution to the financing shortfall that is still stalling congressional action: Treasury bonds.

The prospect of an eventual move away from the gas tax and towards a fee on vehicle miles traveled (VMT) has sparked consternation from some well-known bloggers this week, with Matt Yglesias asserting that "a VMT [tax] has no advantages whatsoever over higher gasoline taxes" and Andrew Samwick suggesting that declining fuel tax revenues mean that tax rates need to go even higher.

Despite Senate Democratic efforts to move quickly on a new jobs bill that includes infrastructure investment and takes steps towards solving the nation's transportation financing dilemma, Congress has just two more weeks of work until time runs out on the latest short-term extension of the five-year-old law governing federal transport policy.