Tom Warne Report, 12 August 2011
Some political leaders are looking to a gas tax hike as a means to stimulate the unstable economy by increased spending infrastructure. With the 18.4-cent-per-gallon gas tax set to expire at the end of September unless renewed, Senate Majority Leader Harry Reid (D-Nev.) said last week at a news conference that the gas tax would be a top priority for him after Labor Day. The gas tax rate has not increased since 1993.
“In Washington, everyone is talking about the need to fix the economy but our long-term economic prospects will only get weaker the longer Congress allows our infrastructure to crumble,” New York City Mayor Michael Bloomberg said this week.
Gas tax discussions may be fueled by a new report by state governors that low national infrastructure spending is threatening the U.S.’s international competitiveness. The Federal Highway Administration reports that gasoline taxes raised about $22 billion for infrastructure so far in fiscal 2011.
“There are always excuses to delay tough decisions, but the time has come for the U.S. to commit to a long-term infrastructure revitalization plan that invests at least $200 billion a year,” said former Pennsylvania Governor Ed Rendell (D). He suggested the revenue also be used for the electric grid, water systems, dams and a broadband system. “At a time when our nation is crying out for job creation, this plan can produce millions of good-paying American jobs over a sustained period of time.”
