[Subjectivist]

Democrats too have been reticent to touching the unpopular tax, a resistance that has extended all the way to the White House. But on Wednesday Senate Minority Whip Dick Durbin (D-Ill), filling in as Democratic leader while Sen. Harry Reid (D-Nev.) recuperates from an exercise injury, offered the most enthusiastic endorsement from a congressional leader yet this year on raising the gas tax.
“Now’s the time do it. But we ought to do it in a thoughtful way,” Durbin said, adding that the regressive nature of the gas tax must be confronted to shield lower- and middle-income drivers. “We’ve got to find some tax relief for them.”
Though Democrats have generally avoided strongly backing the broad tax increase, the real opposition lies in the GOP wings. While maverick lawmakers like Sen. Bob Corker (R-Tenn.) have explicitly endorsed raising the tax, Senate Majority Leader Mitch McConnell recently told the Wall Street Journal: “We all know we’re not going to pass a gas-tax increase.”
Still, newly empowered chairmen have tried to leave the door cracked. Senate Finance Chairman Orrin Hatch (R-Utah), who must come up with the financing for the Highway Trust Fund, isn’t a huge fan of raising the tax but said he was “open” to discussing it. And Commerce Committee Chairman John Thune (R-S.D.), a member of leadership and on the Finance Committee, wouldn’t outright dismiss a gas tax hike Wednesday but was bearish on its chances.€

http://www.politico.com/story/2015/01/g ... z3OHkIldnt

[Subjectivist]

More news from The Hill on the new gasoline/diesel tax proposal, more at the link.

Senate Finance Chairman Orrin Hatch (R-Utah) and Sen. John Thune (R-S.D.), the third-ranking Senate Republican, also said they were open to the possibility of raising the tax.

Democratic leaders in both chambers of Congress, meanwhile, declared this week that “now is the time” for an increase.

While major obstacles stand in the way — namely the House of Representatives —business groups believe there is a real chance to raise the tax in the final two years of the Obama administration.

“Comments this week from Sens. Inhofe, Hatch and Thune signal a growing recognition that the gas tax is a fair and consistent way to fund our infrastructure needs,” Association of Equipment Manufacturers spokesman Michael O’Brien said in an interview on Thursday.

Democrats have typically been more open to the idea of hiking the gas tax, but it’s the shift in Republicans' tone that is drawing more attention to the possibility.

Inhofe argues lawmakers "don't have a choice" but to consider raising the gas tax, which he says is more accurately called a "user fee" — a characterization the founder of the conservative Americans for Tax Reform, Grover Norquist, has yet to sign off on.

Americans for Tax Reform said it is still opposed to the idea of increasing the gas tax, despite the recent decline in fuel prices.

http://thehill.com/policy/energy-environment/228986-momentum-seen-in-push-for-gas-tax-hike

[Tanada]

If they had half a brain between them (but we know they don't) they would institute an automatic tax increase that goes up the same way Cost Of Living measures go up for people on federal benefits like SSI and medical retired veterans. Ohio did this a few years ago with the state Minimum Wage, each January the rate goes up based on cost of living in the state so the politicians do not have to vote on it every time, it just happens automatically. They want 12 cents over two years, but they would be much better off with say a penny every quarter with no ceiling. In three years they get their 12 cents, but the rise is gentle and no consumer notices it in the noise of prices bouncing up and down.

[C8]

Gas/diesel taxes are on the rise- this seems to be driven by a need to finally tackle long overdue road repairs etc. Several states have risen taxes recently- Washington State now has the 2nd highest US taxes (after Penn).

http://www.thestandarddaily.com/washing ... mmer/4513/

The problem, of course, is that wages have not risen for most Americans and the percentage of Americans who are actually working is the lowest in 3 decades.

What this will lead to is probably less driving, people buying more fuel efficient cars, electric cars, etc. all of which may REDUCE the amount of money that is collected in gas taxes and possibly generate a vicious cycle of tax hikes, less gas use, repeat. It will certainly hit the poor and rural people the hardest- many of whom cannot afford new cars.

If wages keep stagnating- I cannot see a way out of this vicious cycle. The only way out is to pay for road repairs with other tax funds than gas taxes. Does anyone do this? Is there a realistic chance that a market in bootleg gasoline could develop?

[Lore]

Maybe then we could move to more mass transportation? Don't you think? A massive network of a difficult to maintain highway system was never sustainable.

[SILENTTODD]

Here in California we pay the 4th highest gasoline tax in the nation after Pennsylvania, Hawaii, and New York. 60 cents/gallon in State/Federal. Legislature was thinking of adding another 10 cents/gallon till the recent run up in July that saw local gas prices where I live go up 50 cents/gallon in one week!! I paid $4.46/gallon for Super last week in Corona California, on TV they've shown $5/gallon some places in L.A.

Retired as of last year and now on what is termed a "fixed" income, the run up has not effected me as much working people who have to commute long distances daily. I'm an exception to the rule, no wife, no kids, and I have a frugal life style were I can live well within my means. But I really wonder how regular family Joe's make it? (maybe I didn't make it either, differences over lifestyle was one of the reasons I'm no longer married).

[dolanbaker]

If you think that your fuel taxes are getting high, then you've never driven this side of the pond!

[C8]

Maybe then we could move to more mass transportation? Don't you think? A massive network of a difficult to maintain highway system was never sustainable.

Except that mass transit becomes more dangerous in a land where salaries are stagnant while unemployment and costs rise. Robberies in major cities transit systems are up as the police have been de-fanged by the Black Lives Matter crowd and sympathetic politicians. Many folks are being attacked by gangs just for fun- lots of feral loose youth looking for entertainment by hurting people.

Liberal law and order policies drive people away from mass transit.

[Lore]

Maybe then we could move to more mass transportation? Don't you think? A massive network of a difficult to maintain highway system was never sustainable.

Except that mass transit becomes more dangerous in a land where salaries are stagnant while unemployment and costs rise. Robberies in major cities transit systems are up as the police have been de-fanged by the Black Lives Matter crowd and sympathetic politicians. Many folks are being attacked by gangs just for fun- lots of feral loose youth looking for entertainment by hurting people.

Liberal law and order policies drive people away from mass transit.

Sounds like conspiracy stuff? Any links to facts that such is happening beyond the norm?

[StarvingLion]

The whole "country" is one big Detroit waiting to collapse. The fairytales of "renewables" are simply runaway corruption.

[Lore]

When I was a young lad in rural America I could have walked 3 miles to a train depot and from there have gone anywhere in the country. Now, from that same spot where I grew up you couldn't even catch a bus and no one is going to take a chance and pick you up hitchhiking. Where is the progress?

[C8]

Maybe then we could move to more mass transportation? Don't you think? A massive network of a difficult to maintain highway system was never sustainable.

Except that mass transit becomes more dangerous in a land where salaries are stagnant while unemployment and costs rise. Robberies in major cities transit systems are up as the police have been de-fanged by the Black Lives Matter crowd and sympathetic politicians. Many folks are being attacked by gangs just for fun- lots of feral loose youth looking for entertainment by hurting people.

Liberal law and order policies drive people away from mass transit.

Sounds like conspiracy stuff? Any links to facts that such is happening beyond the norm?

Cheap shot reply- Do you even read the news? Google Baltimore record homicide rate July, Chicago crime rise, New York subway crime rise and choose the last 3 months as a filter (of course this is assuming you are really interested in the subject).

[kanon]

Transportation is a great subject for partisan BS. Crime, subsidies, unions, liberals -- all the trash is associated with public transportation. The American Way is to sit in traffic and rejoice at the sprawl, pollution, and waste. Miles and miles of cars all lined up, gleaming in the sun, radiating heat, burning gasoline, and depreciating. It is a truly glorious display of our service to the banking class. Meanwhile, the petty criminals and union workers are preying upon the mass transportation users, users who are poor because only poor and minority people would choose riding over their responsibility to personally deal with traffic. Some misguided states have raised gasoline taxes, but this is only because they have failed to drive their poor people to California. As we all know, the liberal welfare of California is a magnet for poor subsidy loving people. If they won't leave Baltimore, then drive them out. Besides, criminals ride around on subsidized public transportation looking for rich people's houses to burglarize. They also ride around looking for policemen so they can be beaten up before snatching a few purses. Yes, public transportation is a breeder of crime, so raised gasoline taxes is a sign of a failed state. The police should tolerate crime on and around public transportation because the car dealers, highway contractors, oil companies, and Repub/Demo politicians are concerned about the poor and want them to have plenty of recreational opportunities. We could read about it on Faux news, if we could read. The highways are deteriorating and get worse every year. The solution is to build new highways and clear the congestion. I say keep the gubmint out of my highways!

[Tikib]

High petrol and diesel taxes are common in Europe and have the desired effect of forcing ppl to use less fuel.

[dolanbaker]

High petrol and diesel taxes are common in Europe and have the desired effect of forcing ppl to use less fuel.

It also means that those who live in remote areas are much poorer than their city counterparts, in extreme situations they're "marooned!".

[Outcast_Searcher]

High petrol and diesel taxes are common in Europe and have the desired effect of forcing ppl to use less fuel.

It also means that those who live in remote areas are much poorer than their city counterparts, in extreme situations they're "marooned!".

But that's part of the whole idea -- to connect real consequences to decisions.

For 35 years now, I've wanted the gasoline/diesel taxes in the US to be raised systematically, in a gradual enough way not to destroy the economy. If this were done year after year, it would force the vast majority of people to wake up and take the cost of burning fossil fuels WAY more seriously.

In 1980 (after a decade of fuel "crises") I figured a quarter a year increase for two years and then a dime a year for a few decades would be at least a good start. (Decades later I wanted to see this expanded to ALL fossil fuels, but the idea should be clear) .

Consider the people who live in, say, a McMansion in the exurbs of Washington, DC, and each drive their SUV's into DC 100 miles each way on a daily basis to "have the standard of living they want". If their gas taxes on those 400 daily miles of waste were about $80 higher a day (say 20 gallons of gas times $4.00 a gallon higher gas taxes) -- the vast majority of such folks would be making SIGNIFICANTLY different decisions.

But no. Let's complain about being "marooned" as we continue to roast the biosphere. As if that will help.

[kanon]

The federal gas tax has been flat for more than two decades even as it brings in billions less than Congress chooses to spend each year building infrastructure. But raising that tax is politically unpalatable to the vast majority of Congress, and McConnell stomped on the idea Wednesday after House Speaker John Boehner (R-Ohio) did the same earlier this year.

“Let me just say we’re not going to raise the gas tax. We’re not going to raise the gas tax,” McConnell said.
McConnell rules out gas tax increase

The impression is the public would rebel against increasing the gas tax. Just imagine all those SUV drivers belly aching about about the gas tax! But, in fact the public probably would not complain much, because the tax would mostly be paid by the Republican sponsors -- the Koch Bros and the other Fossil Fuel corporate welfare suckers.

Pump Shock

The analysis, by Dr. Alison Black, chief economist for the American Road & Transportation Builders Association (ARTBA), found, on average, the price for a gallon of regular gasoline the day after a state gas tax increase goes into effect only reflects about 22 percent of the new levy. A month after enactment, only about a third of the levy shows up in the pump price, she says, and thereafter, it is not a significant retail price factor.

Granted, this is one corporate lobby saying the other lobby should buy lunch, but it shows that concern about voters or the economy is not the motivation here.

One may assume that higher gasoline taxes would discourage consumption, but if the proceeds are used to expand the road system, the result is increased driving. Therefore, I expect no effect from the few states that raised gas taxes. I think the real reason is the Republicans, with Democrat's tacit approval, will try and take highway and fossil fuel subsidy money from other revenue sources, such as social security, medicare, or environmental protection. This is the approach in Texas as Proposition 7 (SJR 5) is scheduled to reroute $2.5 billion to the highway lobby pending a constitutional amendment vote November 3, 2015.

[JV153]

The gasoline taxes have been rising steadily in China and India too - that's probably why global oil demand growth is slowing and the price of oil is dropping.

[Outcast_Searcher]

The gasoline taxes have been rising steadily in China and India too - that's probably why global oil demand growth is slowing and the price of oil is dropping.

Yeah, because prices have nothing to do with supply and demand. Sure.

[Outcast_Searcher]

The gasoline taxes have been rising steadily in China and India too - that's probably why global oil demand growth is slowing and the price of oil is dropping.

Yeah, because prices have nothing to do with supply and demand. Sure.

So this had NO effect in 2010 - 2014, when global oil prices averaged around $95ish per barrel. Then suddenly, in about August 2014, it all kicked in and oil prices began to plummet. (Hint: this is sarcasm).

Do you think about microeconomic principles at all before you post about demand and prices for oil?