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Page added on February 27, 2009

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Commission recommends federal gas tax increase

A panel created by Congress calls for increasing the tax by 10 cents a gallon and indexing it to inflation — and for switching by 2020 to a tax on miles driven. Broad resistance is expected.


Reporting from Washington — As Washington struggles to find ways to fund highway improvements, a congressionally created commission on Thursday called for a 10-cent-a-gallon increase in the federal gas tax, while proposing that the country move to a system of charging motorists for how much they drive.


The idea of a tax increase would probably face strong resistance from lawmakers seeking reelection and consumers already reeling in a tough economy. And the Obama administration last week gave a cold shoulder to any mileage-based tax — which would require placing tracking devices in taxpayers’ vehicles, a concept critics decry as an invasion of privacy.



Still, the recommendation will be part of an important debate as Congress prepares to write a massive highway bill: how to pay for maintenance and traffic-easing road construction when the current 18.4-cent-per-gallon federal gas tax no longer provides sufficient funding.


Last year, Congress approved an emergency $8-billion bailout of the highway trust fund because gas tax receipts were failing to keep up with spending.


On Thursday, the National Surface Transportation Infrastructure Financing Commission called for the 10-cent-per-gallon increase, as well as indexing the federal gas tax to inflation. The panel also backed adoption of a system to begin charging motorists by 2020 based on how many miles they drive.


Relying on a gasoline tax is “not sustainable in the long term and is likely to erode more quickly than previously thought due in large measure to heightened concerns regarding global climate change and dependence on foreign energy sources, which are creating a drive for greater fuel efficiency, alternative fuels and new vehicle technology,” the commission report said.


The 15-member bipartisan commission said that charging motorists based on how many miles they drive “embodies the ‘user pays’ principle and more accurately aligns the costs and benefits of the surface transportation system to those who are using it.”


LA Times



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