The Leaflet: States Consider Hiking Gas Taxes

Published January 30, 2015

States Consider Hiking Gas Taxes

State governments, including those in Iowa, Michigan, New Jersey, South Carolina, and Tennesse, are considering increasing motor fuel taxes, a move proponents say is needed to improve transportation infrastructure such as roads and bridges. At the national level, a letter signed by more than 50 organizations urges Congress to reject proposals to increase the federal gas tax.

Tennessee Gov. Bill Haslam (R) recently stated, “At some point and time soon … I think there will be a bill about [the] gas tax.” In bordering state South Carolina, Gov. Nikki Haley (R) suggested the state’s gas tax should be raised by 10 cents over three years, provided lawmakers first agree to reduce the state’s income tax from 7 percent to 5 percent over 10 years.

Fixing crumbling roads and bridges does not require raising fuel taxes. States should be given more control over federal highway funds, and they should devote 100 percent of their state fuel tax revenues to fixing roads and bridges, not general spending.

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Energy & Environment
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Health Care
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From Our Free Market Friends
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