Letter: Is increasing the gas tax really a good idea?
Many Indiana legislators appear to be lining up to support HB 1002, which would immediately raise the state gasoline tax by 10 cents per gallon and would continue to raise the tax annually. The bill would also increase alternative fuel decal fees by 50% as well as increase fees on electric vehicles, and commercial vehicles with a gross weight of 26,000 pounds or more. (1)
The bill is being sold to the public as being sorely needed to fix our aging infrastructure which is in dire need of repair.
No one would argue that many of our roads and bridges are in poor shape. One only needs to drive across the Sherman Minton Bridge (Interstate 64) between New Albany and Louisville, a rotting, rusting eyesore badly in need of replacement, to see but one example of bridges needing repair or replacement. (Yes, a lot of money was recently spent on this bridge to strengthen and stabilize it, but it has been allowed to rust and rot since. Its concrete supports are literally crumbling!) Two other examples are the US 41 twin bridges between Evansville and Henderson, especially the much older northbound span.
However, some research into the current use of the state’s gasoline use tax, compared with what HB 1002 proposes to do with this tax, is instructive.
Did you know that of the 11.6 cent per gallon tax you currently pay at the pump, that 98.848% of that money is deposited into the state’s general fund? Only 1% goes into the motor vehicle highway account. The remainder goes into two different rail service funds. (2)
Think about that for a minute.
Now consider the facts from HB 1002 itself:
The bill proposes that of the increased gas tax in fiscal year 2017, that only 14.286% of the tax goes into the motor vehicle highway account, while 85.714% still goes into the general fund. The general fund’s share drops to 14.285% by FY 2020, and is eliminated altogether by FY 2021. (3)
That may sound good on the surface, but you must further consider the fact that no money is deposited into a State Highway Fund until FY 2019! (3)
There are multiple problems with this proposed legislation. I wish to address three of those problems.
One, why hasn’t more money from the gasoline tax been going to support roads and bridges? Like, maybe, 100%? Why does the General Fund need so much money when our roads and bridges are crumbling?
Two, even if the public were inclined to support this legislation – and most would be opposed if they knew the true facts about this bill – we cannot wait until 2021 to start major repairs. Those repairs need to be commenced immediately. And they can be funded if money from the gasoline use tax were properly earmarked for road repair rather than used to support the General Fund.
Three, many of us feel that we are already overburdened with taxes. As an example, we were supposed to receive relief from property taxes several years ago. Yet local governments and school systems continue to push for more and more taxes while continuing to spend and spend as if taxpayers have unlimited sources of income.
We don’t.
Common sense must prevail in this issue.
Rep. Mike Braun of Jasper and Rep. Holli Sullivan of Evansville are two of the five co-authors of this bill along with the author, Rep. Edmund Soliday of Valparaiso.
I urge you to go to the Indiana General Assembly’s website and do your own research, learn the facts, and then contact your representatives and make your thoughts and wishes known about this bill.
If they will not listen to you, you still have a remedy. Vote for and support any of their opponents in the next election, even if it is someone from the political party you normally would not support. Only in this manner can government truly be of the people, by the people, and for the people; rather than of the special interests, by the special interests, and for the special interests.
Anthony Nelson
Dale, Ind.
(1) http://iga.in.gov/legislative/2017/bills/house/1002#digest-heading
(2) http://codes.findlaw.com/in/title-6-taxation/in-code-sect-6-2-5-10-1.html
(3) http://iga.in.gov/static-documents/5/7/6/3/57636067/HB1002.02.COMH.pdf
Simple answer to the headline question: No. And what says the funding must be tied to gas and/or driving-related taxes? How about a user-fee for new vehicle purchases, and maybe based on gas mileage ratings or weight-class for each vehicle – the lower rated (heavier) vehicles such as the big SUVs, V8s and trucks would pay more while the higher-rated (lighter) vehicles such as compacts and 4-cyl, et al would pay less. Also, how about a cigarette and/or beer and alcohol tax to fund these improvements. Indiana is a high consumer of these so may work well – few would quit and for those who would, it’s a plus for their health and for the safety of others. Furthermore, before acting the lawmakers ought to wait and see what the new president has in mind for fixing (and funding) repairs or replacements to infrastructure. This was one of his main campaign topics and so don’t believe we’ll have to wait long to at least see what he has in mind.
Well lets see now we have been paying a gas tax for years as it is. As I drive the badly decayed roads here in Southern Indiana I often wonder, what happened to that money? Its well known politicians can’t or won’t manage the monies received as it is. Not one more cent should be handed over until all of them attend a financial class. Economics 101.