Is Raising Gasoline Taxes Fiscally Conservative?
Read my hub "Is Raising Gasoline Taxes Fiscally Conservative?" and decide what is the most prudent way for government to fund transportation projects.
No...it makes no sense. In fact, it is inflationary to do so because ultimately it raises the cost of goods at the retail level. When that happens, you hit people in the wallet twice...once for fuel tax which is past on to the consumer and the other for a price increase in goods on the shelf. Ultimately both are a negative from the economy and the loss of economic growth will not be offset by the taxes collected. WB
@Wayne If you would not raise gas taxes to pay for roads and transportation projects, how would you pay for roads and transportation projects? They have to be paid somehow. My state uses toll booths to pay for some major roads, which keeps our gas taxes about 3 cents per gallon lower than they would be without the tolls. However the cost of collecting tolls makes it a far more inefficient way of raising transportation funds than a gas tax. It makes no sense from an efficiency point of view.
Based on your answer, I assume you did not read my Hub on this topic, as I lay out the case regarding why raising the gas tax can be fiscally conservative, when it save money versus borrowing and paying bonding fees and interest.
In a simple word, NO! Our governments, both state and federal, are far overfunded already. They just need to both learn to control their spending. They don't need more revenue, they need some self control concerning spending.
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Should America drop gasoline taxes when prices are high?
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