Gas Tax Hike On It's Way?

Can driving less make us pay more? That is the latest possibility from the federal government.

Decreased demand for gasoline has had the best effect for consumers -- prices falling from over $4 a gallon to less than $1.50 in a 6 month period. However, buying less gasoline means less tax revenue for the government (the current gas tax is per gallon, not a percentage of total sales). The motor fuels tax currently pays for road repair and new road construction. As such, the feds are looking at a 10 cent increase on unleaded, and 12-15 cent increase on diesel.

We haven't heard a lot of alternatives to increasing the tax. Building more toll roads is the only one we have heard, and quite frankly selling every road to the highest bidder and tolling the driver ends up costing the driver more than paying the gas tax. Even Republicans in Texas have been advocating the increase in our own state motor fuels tax. One of the major reasons for the shortfall in Texas is that 34% of our gas tax is diverted for other uses -- funding education, etc. (A great explanation comes from a 2008 NCTCOG report).

We advocate for one other revenue source -- taxing trade. This will not be the entire solution of course, but only part. Texas, and most of the country for that matter, relishes in free trade. NAFTA, CAFTA, etc all pour shipping containers in and out of this country. While the volumes are at a 6 year low, it won't remain that way. Shipping will increase again with a stronger dollar. Our proposal is to impose fees on containers. States like California have already advocated for fees of $30 per TEU (20 foot equivalent unit container) entering its ports, in order to fund transportation projects, and continue their goal of cleaner ports. They have been advocating for even more. When you have over 6 million loaded TEU flowing annually through the Port of Los Angeles alone, that would provide $180 million in revenue just from that one port alone. A container fee is ultimately a tax on the consumer, as the added shipping cost would be passed down the supply chain, however at a cost the consumer would not even see considering the amount of cargo that can be held in a 20 foot container. Creating this example on Texas terms, the Port of Houston surpassed 1.5 million containers in 2004. A $30 fee would provide the state $45 million it didn't have before. It would be a drop in the bucket for our transportation needs, but at least it is a drop.