Fuel prices are plunging to their lowest level in years. The Highway Trust Fund is broke, and Congress faces a spring deadline to replenish it. The obvious answer—the only answer, according to many in Washington—is to raise the 18.4 cent-per-gallon gas tax, which hasn’t gone up in more than 20 years. Since prices at the pump have dropped more than a dollar per gallon in some areas, drivers would barely notice the extra nickel they’d be forced initially to pay as a result of the tax hike. That wasn’t true until recently: For years, the pocketbook punch of the Great Recession combined with gas prices that peaked above $4 made an increase both politically and economically untenable.
Yet even with prices at a four-year low, the odds of Congress touching the gas tax are as long as ever. “I think it’s too toxic and continues to be too toxic,” said Steve LaTourette, the former Republican congressman best known for his close friendship with his fellow Ohioan, Speaker John Boehner. “I see no political will to get this done.”…
Advocates on and off Capitol Hill are mounting a new push to lift the gas tax as Republicans prepare to assume full control of Congress in January. Funding for the Highway Trust Fund will run out May 31. On 60 Minutes last month, officials including former Transportation Secretary Ray LaHood and former Pennsylvania Governor Ed Rendell used the specter of a major bridge or highway collapse to warn of the need for new investments. LaHood, a Republican who was once rebuked by the Obama White House for suggesting a switch to a mileage-based tax, is now going public on the gas tax, in his typically colorful style. “The best argument for doing it is is that America is one big pothole,” he told me in a phone interview, “and America’s infrastructure is in the worst shape that we’ve seen in decades.”…
In a separate interview, Blumenauer said the administration had recently “dialed back” its opposition, with senior officials telling lawmakers that if Congress could somehow pass a gas tax hike, he would sign it. Yet just a few hours after his and Petri’s press conference, Obama himself seemed to put their plan back on ice. At a business roundtable at the White House, FedEx CEO Frederick Smith asked Obama why Congress couldn’t just raise the gas tax and solve the infrastructure problem. “In fairness to members of Congress, votes on the gas tax are really tough,” the president replied, after first chuckling that if it he were in charge on Capitol Hill, “I probably already would have done it.”
It sounds like Congress thinks that such a move would be very unpopular. Americans like driving (even if they have cut back in recent years), prefer cheaper gas, believe the country is still experiencing tough economic times, and many don’t want to personally pay more in taxes. Yet, it makes some sense that highways should be funded by the gas tax: if you use the highways and associated infrastructure, you should help bear some of the cost.
Is Congress responsible for this or the American people? The article suggests Congress won’t act but Congress suggests the American people wouldn’t want it. Are both groups pretty blind to infrastructure needs or long-term investments? In the short-term, few people want to pay the necessary costs but no one will like it if the situation becomes dire.