Gas tax increase overdue
SB 627 raises highway tolls for out-of-staters. In support of the bill, Sen. David Watters of Dover said “We haven’t raised a toll since 2007, and it is time…” I quite agree. While we’re at it, let’s also discuss the state gas tax. The tax is currently 23.8 cents/gallon, and not pegged to inflation. The tax’s purchasing power is just 70% of what it was when last adjusted in 2014.
Prior to that increase, the gas tax was stuck at 18 cents since 1991, at a time when gasoline retailed for about $1.15/gallon. If the tax were a percentage, it’d be 60 cents today. If only adjusted for inflation, it’d be 44 cents. It’s a similar story at the federal level, where the 18.4-cent tax was last touched in 1993. Meanwhile, fuel economy is higher, meaning less gasoline sold while miles driven increase. Vehicles are much larger, heavier, and powerful now — further increasing wear. Imagine being asked to work harder but not receiving a pay raise in three decades!
I understand that fuel prices are quite high right now, owing to the president’s war in Iran. Why increase gas taxes on top of that? Because war or not, our roads need a lot of repair and our bridge red list is a mile long. Is there a better way to pay for these things? And if high fuel prices lead people to choose more efficient vehicles or burn less fuel? I see that as a benefit, too.