The Gas Tax Debate

It goes without saying that we’ve all been feeling a little more pain at the pump lately. But did you know that the recent spike in gas prices has sparked a debate around the gas tax? It’s something we hardly pay attention to when we stop to fill up, but those 9/10ths of a cent can certainly add up when we’re paying over $4.00 per gallon.

For some context, revenue from the federal gas tax funds maintenance and improvements of US transit systems, roads, and bridges – which I’m sure is something everyone agrees is essential. However, there are a lot of convincing arguments on both sides when it comes to deciding whether to raise, lower, or completely eliminate the gas tax.

These days, there is a lot of push to eliminate the gas tax altogether, while others argue that the gas tax rate should be raised – something that hasn’t changed since 1993. So, what are the pros and cons of this tax anyways?

The most common argument for lowering or eliminating these taxes is to put more money back into the pockets of low and middle-income families and take away some of the economic hardship and stress associated with the already inflated prices.

It sounds like a no-brainer, right? Maybe not, because there are some things to consider if the gas taxes were lowered or eliminated entirely…

The typical argument against eliminating or lowering the gas tax (and some even make the case to raise it) is that the Highway Trust Fund, which is funded mainly by the gas tax, could become insolvent. That would leave the question of how to generate the funds to perform the necessary maintenance and improvements to the US transportation systems. If we’re not paying for this at the pump, we’ll pay for it somewhere else.

What is your stance on the gas tax?

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