Transportation Taxes in Various Forms Proposed

Oregon Rep. Earl Blumenauer, has unveiled his proposal to nearly double the federal gas tax to applause from some special interest groups, but in clear opposition to public opinion.

“I want this to be part of the budget negotiations over the next few months,” said the Democratic congressman from Portland, referring to the House-Senate budget conference committee formed as part of the agreement to end last month’s government shutdown.

On the Senate side, Barbara Boxer (D-CA), who chairs the Environment and Public Works Committee, has proposed levying a tax on fuel at the wholesale level, collecting money at the refinery rather than the pump. The public would likely blame the industry for the increased costs at the pump, allow industry critics to point to evil corporate profits as the cause for the additional burden instead of additional imposed tax.

Congressman Blumenauer has also re-introduced legislation to tax drivers based on the number of miles driven rather than by the gallon. Similar legislation is being looked at in the Massachusetts legislature. The idea of the state tracking the movement of private vehicles has raised some concerns among privacy advocates who fear the government would have too much information at its fingertips about the driving habits of Americans.

From liberal Maryland to conservative Wyoming, states are enacting a variety of tax and fee increases to pay for transportation. Pennsylvania became the latest, approving billions of dollars in new taxes for roads, bridges and transit. It lifts the cap on taxes on the price of gasoline at the wholesale level, meaning drivers ultimately will pay more at the pump. They’ll also pay more for driver’s licenses and traffic violations.

Earlier this year, Virginia approved $3.4 billion in taxes over the next five years for transportation projects including highways, mass transit, passenger rail, airports and seaports.

Conservative groups have grumbled about the massive tax increases and plan to challenge the lawmakers who supported them.

The current federal transportation law, which contained the lighting and marking requirement for farm equipment, will lapse by the end of next year and interest groups such as construction unions, road builders and heavy equipment manufacturers are already busy looking for additional tax dollars to fund massive building projects.

From the county road commission, to the state, to the federal government, continue to watch for fees, regulations and tax proposals, as all are looking for additional revenue from any source available.