Congressional Committees will wrestle with figuring out components of a transportation bill this month. One component they – and the White House – won’t look at is a gas tax increase. This isn’t surprising – Congress rarely increases the gas tax. And over the years, that reluctance has significantly scaled back the preservation, maintenance, and expansion of road, transit and rail projects that would move people and goods more safely, cleanly and quickly.
When the gas tax remains flat over the years its purchasing power declines in part due to inflation of construction-related expenses. Meanwhile, the steady population increase dictates the need for expanded roads, transit and other travel options. And much of the interstate is approaching the end of its practical life and needs significant rehabilitation.
At the state level, Institute on Taxation and Economic Policy has found that
“after considering inflation [of construction costs], the average state’s gas tax is 6.8 cents lower today than the last time it was raised. “