Letter: Why increasing Indiana’s gas tax is necessary
Recently, a letter to the editor was submitted to the Dubois County Free Press about the House Republican road funding plan, House Bill 1002. While I appreciate the constituent input I receive throughout session, much of the information provided in that letter was inaccurate and does not properly address why lawmakers have proposed to increase the state’s gas tax.
Before presenting the facts about the bill, it’s important to understand why Indiana needs a long-term, data-driven funding plan to maintain and improve its roads and bridges. Data shows that 10 percent of our road surfaces are in poor condition, costing the average Hoosier motorist nearly $500 in annual vehicle repairs. State and local economies also greatly depend on reliable roads and bridges. We need to turn our attention to meeting our long-term needs and focus on a road funding plan that will keep our infrastructure safe and functioning for years to come without saddling future generations with mountains of debt.
Under Republican leadership, Indiana has led with the right policies, cutting billions of dollars in taxes for Hoosier families and job creators. Indiana now ranks among the top states nationally for its economic climate. It’s time to invest in Indiana’s infrastructure without spending down reserves or cutting into the state’s general fund, which pays for critical services like education and public safety.
Over the next 20 years, state interstates, highways and bridges will need on average an additional $1.2 billion annually for maintenance and improvements. Local roadways also have significant funding shortfalls over the next two decades. Legislators must look to those who use and benefit from the state’s infrastructure to help pay for maintenance and improvements.
Currently, the money generated from Indiana’s 18-cent per gallon gas tax goes exclusively to road and bridge funding – none of it goes to the general fund. The bill calls for increasing user fees by 10 cents per gallon on gasoline, special fuel (diesel) and motor carrier surcharge taxes (commercial trucking and busing) to restore buying power lost to inflation and improved fuel efficiency. The gasoline tax has not been increased since 2003 and other fees haven’t been increased since 1988. Under this plan, the average Hoosier motorist would only pay about $4 more per month at the pump. Moving forward, these fuel tax rates would be indexed annually to inflation and income growth but capped at no more than one cent per year.
It’s important to distinguish the gas tax from the sales tax on gas. Under HB 1002, the remaining 4.5 cents of the 7 cents per dollar (7 percent) sales tax on gasoline would be shifted from the state’s general fund to the State Highway Fund. This will ensure all taxes paid at the pump are dedicated exclusively to funding road and bridge improvements.
Also, the bill would implement a new $15 annual registration fee on all vehicles and a $150 annual fee on all electric vehicles, which currently do not pay fuel taxes. This money would provide an ongoing and sustainable source of funding for Indiana’s Community Crossings Matching Grant Fund, which provides road funding dollars to local governments.
Finally, it’s important to remember non-Hoosiers and out-of-state companies will also pay a considerable amount toward these user fees. They should pay their fair share to utilize the Crossroads of America.
The House Republican funding plan is a start, and it will continue to be debated and discussed in the coming weeks. If you have questions or input, please call me at 317-234-9447 or email h63@iga.in.gov.
Sincerely,
State Rep. Mike Braun
House District 63
The statement by our “representative” that the average Hoosier endures $500 worth of damage to thier vehicles is outlandish at best. The republicans used to be fiscal conservatives, but are now hell bent on tax and spend type legislation. Its interesting also that the bill includes automatic increases forever. Also interesting is that the vehicles that do the most damage to the roads, the heavy trucks are exempt from the newly increaed fees. So tax the working class and let the businesses that damage the roads off free. That is excellent representation. Maybe instead of representatives these mebers of government should be called pimps. I am disgusted by this type of representation, and love to hear the repulicans whine about the tea party! The tea party only exists because of this type of legislative actions. God help us all, perhaps one day we the people will vote out every incumbant member of government and send a message that we are sick of this representation.
Roads must be funded. The new projects are vital projects. Nothing comes free though.
The liberty movement has a lot to say on this subject but opinion range quite a bit.. The local liberty group has said much on this and has discussed this at length with State Rep Braun, Senator Mark Messmer and Senator Eric Bassler. We have heard the details and have offered opinions, some taken, some not. One must understand the power the leadership in Indy have before ranting online.
Not that I know who Bob is, but the local liberty group, the Freedom Makers of Dubois County, realize the importance of infrastructure. There is no Tea Party collective opinion, never has been, and we are not a Tea Party group.
Limited government can stand for correctly funding roads and new projects and fiscal responsibility.
Just saying NO, is a waste of energy.
I will point out trucks will pay increased costs.
Of the 10 cent increase, 4 or 4.5 cents go to the counties, cities, towns, etc to pay for roads. The state keeps only remaining money from that.
If anyone wishes to debate the road funding bill, and present funding alternatives, join us on February 21st, 6:30pm, at Shoney’s in Jasper. All opinions are welcome.
Well said, Bob. I find it most interesting that Rep. Braun can easily dismiss my recent letter as “inaccurate” while not providing any sources – only political doublespeak. I quoted existing Indiana Code as well as from the proposed HB 1002. If I am inaccurate, I am more than willing to admit it. But please provide sources!
Oh, by the way, Rep. Braun: How do you propose that people from out of state pay their “fair share”? Will you have state troopers pulling everyone who does not have an Indiana plate over and demading they pay up before proceeding through Indiana?
Bob, you and everyone else must understand that far too many Republican “representatives” in Indianapolis do not represent the people. They represent Speaker Brian Bosma and the HRCC. What Bosma says, goes. Period. It does not matter what the people think.
And Bosma has spoken. The gas tax WILL go up. Be quiet, comrades, and submit. Resistance is futile.
Just another corrupt politician giving us “alternative facts”!
a state with a 2.4 billion surplus and a representative that says it’s only 4 dollars and some change dose not see the struggles of the common man living paycheck to paycheck health insurance going up kids moving back in with parents they work 2 to 4 months and get paid well but let’s take more don’t try to find a cheaper way to do things lets tax more we are taxed to death wheel tax ex tax regerstration tax federal tax state tax sales tax county tax I probably missed some enough is enough do your job raising taxes is the easy way find a better way and the roads in southern Indiana are the worst no matter how much money Indianapolis gets that’s where the roads get fixed so don’t tell me it’s only 4 dollars that’s just 4 more till its 8
Lies through omission. What they don’t say is the following:
1. Half of the existing gas tax was taken and put towards the general fund to cover up for tax breaks given to the politicians friends. In the mean time they let the roads go.
2. While 100 percent of the new gas tax is destined for roads, that doesn’t mean that the old gas tax cannot be 100 percent taken and put in the general fund.
3. This is a standard republican move to shift taxes from the rich to the poor. thanks
It’s mind-boggling that our local and state GOP representatives continue to seek punishment against those of us who would attempt to curb the cost of gas and environmental damage our vehicles create by purchasing electric, nor that an out-of-touch CEO would fail to recognize how much he does NOT look out for the middle or lower class in his representation of our community.
But then again, it’s no surprise. After all, Mike Braun focuses on quantity over quality in his own business. Forget about a livable wage or adequate benefits as long as he keeps adding more low-paying jobs so that his family can reap the profits!