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Tuesday, December 04, 2007
David Strom :: Townhall.com Columnist
Eliminate the Federal Gas Tax
by David Strom
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State gasoline taxes themselves are not without significant problems, but at least the politicians are somewhat more likely to be responsive to their constituents’ concerns than the byzantine bureaucracies and Congressional Committees that now rule our fate.

Ideally, we need to gradually introduce market pricing mechanisms into the funding mix; not only would this lead to fewer distortions in the allocations of resources, but the market signals that prices provide are a far better way to help policymakers match supply and demand than the current blunt and often inaccurate guessing game that goes on today. A properly designed pricing system could not only help eliminate congestion today, but it could also send signals to transportation planners regarding exactly where new investments should be made to satisfy demand.

Current transportation planning comes from the top down. It is driven by politics, bureaucratic infighting, and the whims of policymakers and planners.

Instead, transportation policy and planning should be driven by one overriding goal: increasing the mobility of goods, services, and people with the maximum of efficiency using the scarce resources at our disposal. Markets, not planners and politicians, are best suited to achieving this goal.

Eliminating the Federal gas tax, and all the distortions it creates in the decision-making process, would be a great first step to putting citizens in control over how our transportation dollars are spent.

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About The Author

David Strom is the President of the Minnesota Free Market Institute. He hosts a weekly radio show on AM-1280 "The Patriot" in Minneapolis-St. Paul, available on podcast at Townhall.com.

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Taxes misused and abused...
The gasoline tax was originally put in place in 1932 under President Hoover during the depression at 1 cent per gallon on either domestic or imported gasoline. It was raised over the years and never "went away" as promised in one year. (What taxes do?)

By 1972 under the Revenue Act it was up to 4 cents; under Reagan it rose to 9 cents, with 8 cents redirected to the Highways and 1 cent to Mass Transit. President George Bush Sr. raised it to 14 cents with half to reduce the deficit and half to the Highway Trust Fund.

When Bill CLINTON came into office, he MORE than DOUBLED it to 18.4 cents where it has STAYED! He wanted to put ZERO cents to the Highway Trust Fund and all to the deficit reduction, but was overruled by the Taxpayer Relief Act which allows 4.3 cents to go to the Highway Trust Fund and the rest to deficit reduction.

It has NOTHING to do with Oil Companies or Our current President George W. Bush, who Has NOT raised it and who everyone likes to blame; it has to do with government control and spending!

NO TAX goes AWAY & thanks to CLINTON the gasoline tax DOUBLED! It has not risen since.

Ron about tax reform
Since we the people are the only ultimate source of all tax revenue, all existing taxes should be repealed and replaced with a proper single tax for each level of government - ONE TAX AND DONE. After removing federal and state at-the-pump taxes and all the other taxes, your $3.00 gallon of gas will cost $1.80. Government is the main gouger when it comes to gas prices, and all other prices too.
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