2006 February | Keword Berry

February 28, 2006

Are Americans Open to a Gas Tax Rise?

â€œAmericans are overwhelmingly opposed to a higher federal gasoline tax, but a significant number would go along with an increase if it reduced global warming or made the United States less dependent on foreign oil, according to the latest New York Times/CBS News poll.â€

â€œEighty-five percent of the 1,018 adults polled opposed an increase in the federal gasoline tax, suggesting that politicians have good reason to steer away from so unpopular a measure. But 55 percent said they would support an increase in the tax, which has been 18.4 cents a gallon since 1993, if it did in fact reduce dependence on foreign oil. Fifty-nine percent were in favor if the result was less gasoline consumption and less global warming. The margin of sampling error is plus or minus three percentage points.â€

â€œTwenty-four percent of those polled said they would support a higher federal gasoline tax if the new revenue was used to help fight terrorism, and 28 percent would go along with a gasoline tax increase if, as an offset, their income taxes or payroll taxes were lowered.â€

â€œBecause increasing the gas tax is regressive, falling hardest on those who can least afford it, Mr. Borenstein would offset the bite by lowering income taxes in a way that would â€˜make most middle and lower income people better off.â€™ But they would end up driving less because of the rising cost of gasoline, some economists believe. By Mr. Borenstein’s calculation, a 10 percent increase in the price of gasoline reduces consumption by 6 to 8 percent â€˜over the long run.â€™â€

Raising gasoline taxes to fund new technologies to save on gas consumption is a non-starter for us. The Federal governmentâ€™s ability to pick winners and losers in technology is highly suspect and should not be attempted.

An idea that has piqued our interest is raising the gasoline tax, making it more regressive, while lowering the income tax for middle and lower income people, making it more progressive. What we like about this is that it should be revenue neutral. That is to say the tax collected by the increased gas tax is the tax given back by the decreased income tax. No crystal ball prognostications required by our Federal government.

The problem, at least for the moment, is the lack of â€œbuy-inâ€ by the American public. According to this survey, only 28% of those polled think this is a good idea. And that is where political leadership comes in since it is their role to explain the issues and benefits of such a plan.

This idea has some long-term, major effects on U.S. citizens. Letâ€™s have a public, full-spirited debate on the issue. Maybe it will gain widespread public acceptance, maybe not, but at least it should be discussed.

We are always interested in your thoughts and ideas. Write us at blog@moderatevoters.org.

“Moderate” is not a 4-letter word!

Filed by Administrator at 11:16 pm under General
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