Tags: experts | gasoline | tax | hike

Some Experts Favor Gasoline Tax Hike to Add Revenue

Thursday, 29 Nov 2012 09:46 AM

By Dan Weil

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
As Democrats and Republicans prepare to resume negotiations on the fiscal cliff Thursday, some experts recommend an increase in gasoline taxes to raise revenue.

Federal gas taxes currently total 18.4 cents a gallon, generating $32 billion a year, CNNMoney reports. That money is used to improve the transportation infrastructure, including roads and bridges.

But that doesn’t cover all of the states and cities’ costs for the upgrades. The rest comes from the federal government’s general funds and/or borrowings. At the same time, gas taxes haven’t increased since 1993.

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

The Simpson-Bowles deficit reduction committee recommended a gas tax hike of 15 cents per gallon two years ago to cover the $50 billion annual transportation deficit.

And Emil Frankel, director of transportation policy at the Bipartisan Policy Center, agrees.

"Establishing a sustainable resource base for transportation needs to be part of any grand bargain," he tells CNNMoney. "In the short run, raising the gas tax is the best way to do that."

Some experts advocate a carbon tax, though the Obama administration has indicated it won’t seek one.

“Major studies, including one from the non-partisan think tank Resources for the Future, show that a tax on carbon is better for overall U.S. economic growth than the current mix of higher taxes on work and capital that a carbon tax could displace,” consultant Paul Bledsoe, a staff member of President Bill Clinton’s Climate Change Task Force, writes in The Hill.

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

© 2014 Moneynews. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved