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Freakonomics: Doing a U-turn on the gas tax

Marketplace -- The cars we drive today are more fuel-efficient than ever, and that would seem to be great news for everyone. But here’s one downside: transportation budgets are heavily powered by the gas tax.

"And right now, the nation relies extremely heavily on gas taxes for transportation funding," according to Jaime Rall, from the National Conference of State Legislatures. She says that better fuel mileage means less money for roads and bridges. "Advancements in fuel efficiency pose some real problems for transportation budgets."

Plus, the gas tax isn’t a percentage but rather a fixed amount -- which, because no politician wants to raise the gas tax, has been stuck at 18 cents a gallon for 20 years.

So what should be done about it?
...
billing drivers based on their mileage.

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Submitted Feb 21, 2013 By: BurntOrange

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honda0105 Champion Author Tallahassee Posts:18,828 Points:1,637,220 Joined:Nov 2008	Message Posted: Feb 25, 2013 5:58:38 AM Ignore honda0105 Report Abuse I agree rjh, not able to find 1.75 either. However, unlike other taxes, gasoline taxes are fixed taxes. No matter what the price, the tax per gallon remains the same.
rjhenn Champion Author Des Moines Posts:22,605 Points:2,256,100 Joined:Aug 2005	Message Posted: Feb 23, 2013 4:17:36 AM Ignore rjhenn Report Abuse EssexAdri - "Gas Tax is the single highest source of revenue for the entire tax code. In some states the combined Federal & State Gas Tax "exceeds" $1.75 A GALLON" And where do you get that figure from? From what I can find, the highest combined gas tax is less than $0.75, much less $1.75.
geminijax Champion Author Jacksonville Posts:16,920 Points:2,742,750 Joined:Aug 2005	Message Posted: Feb 22, 2013 4:11:12 PM Ignore geminijax Report Abuse HawaiinGuy, you are absolutely correct. "A govt is like a baby, with a healthy appetite on one end and no responsibility on the other end." -- Ronald Reagan Re the "fair share", I've never heard a politician nor a Dem supporter quantify it. How much exactly is "fair share"?
Canucktree Champion Author Alberta Posts:5,028 Points:1,047,890 Joined:Dec 2008	Message Posted: Feb 22, 2013 10:17:54 AM Ignore Canucktree Report Abuse Na-naa!
EssexAdri Champion Author Jacksonville Posts:1,168 Points:284,770 Joined:Jul 2010	Message Posted: Feb 22, 2013 2:25:05 AM Ignore EssexAdri Report Abuse This article is "propogandic BS". The tax-paying population (meaning someone filling up "their own" car vice a Government or Military vehicle) burns through "hundreds" of "millions" of barrels a day, EVERYDAY, including Christmas. Gas Tax is the single highest source of revenue for the entire tax code. In some states the combined Federal & State Gas Tax "exceeds" $1.75 A GALLON (for your standard 12 gallon tank, which can hold 13.5 gallons with the pipe, that's $23.63 in Gas Tax every time you fill up), and 10s of millions of people fill up their tanks everyday in this country. The problem isn't that fuel efficiency is cutting into the taxes, because its not doing that. The problem is that the money generated by the Gas Tax is being divied out to things other than road improvemt/new construction like it is supposed to be by law. Instead, it is in large part dumped into the over-all pot of moneys the government has available for whatever it wants to spend. The Gas Tax does generate a surplus for what the Federal & State DOTs need to do their joBS, but the DOTs are nowhere near the 1st hands in the pot for spending that money. They are supposed to be the 1st, and the excess goes to the general fund. And if the collected taxes consistently exceeds DOT's needs over a long period (a time period, which the Gas Tax Laws do not define further than that) the Tax is supposed to be revised downward to more closely reflect the funding needs of the DOT.
HawaiianGuy Champion Author Idaho Posts:9,663 Points:3,105,800 Joined:May 2003	Message Posted: Feb 22, 2013 2:11:07 AM Ignore HawaiianGuy Report Abuse It's never enough, is it? Government is like an insatiable beast that is constantly demanding more and more to keep it at bay. Unfortunately, no one has ever defined just what that "fair share" politicians keep harping about really is.
NedW Champion Author Indianapolis Posts:5,750 Points:1,167,995 Joined:Mar 2008	Message Posted: Feb 22, 2013 1:09:46 AM Ignore NedW Report Abuse Thank you for submitting this article, BurntOrange.
RambleOn Champion Author New York Posts:2,385 Points:1,532,925 Joined:Aug 2008	Message Posted: Feb 22, 2013 1:00:36 AM Ignore RambleOn Report Abuse Taking Finland's policy then suggests that the police target wealthier looking drivers due to the reward of a greater revenue-producing fine. Hmmm, isn't that called profiling? Ethically our politicians who endorse such ideas show their true colors -that they're not interested in enforcing traffic safety as much as they're interested in TAKING whatever they can from YOU -especially if they think you have more that they can take. Also, I think most billionairs are not out driving themselves around and therefore their chauffers' annual salaries would be the ones the courts would contend with as they determine the fine. I suppose beat-up-looking old lemon-ish cars would be less likely pulled over among the more valuable cars committing moving violations. [Edited by: RambleOn at 2/22/2013 1:03:32 AM EST]
Nshmidt Rookie Author New York Posts:78 Points:140,085 Joined:Oct 2012	Message Posted: Feb 22, 2013 12:58:54 AM Ignore Nshmidt Report Abuse Nothing should be done about it, it's bad enough now as it is.
Buddy2264 Champion Author Tampa Posts:11,797 Points:2,387,670 Joined:Oct 2005	Message Posted: Feb 22, 2013 12:56:40 AM Ignore Buddy2264 Report Abuse First make sure the money went or goes for roads and bridges, I am guessing NOT! Then find a better way, mileage or another way....because we still use the roads and bridges and have to pay for them, and increased MPG and other alternatives have reduced the taxes.....
RambleOn Champion Author New York Posts:2,385 Points:1,532,925 Joined:Aug 2008	Message Posted: Feb 22, 2013 12:51:35 AM Ignore RambleOn Report Abuse Poor and ignorantly irresponsible solution. The revenue continues to flow in and a MAJORITY of motorists will CONTINUE to drive because they have to get to work, school, doctor's appointments, grocery shopping, etc. and then there's the transportation industry. The large portion of America is experiencing LESS income than what used to come in but these retarded "expletive-of-unkind-verbiage" politicians want to keep the full throttle on their income like spoiled little princesses. Fire them and take back America before they bankrupt us.
Prodaddy Champion Author Houston Posts:8,516 Points:1,921,910 Joined:May 2007	Message Posted: Feb 22, 2013 12:42:53 AM Ignore Prodaddy Report Abuse I thought everyone already knew this
ican2step Champion Author Pittsburgh Posts:1,811 Points:452,400 Joined:Feb 2012	Message Posted: Feb 22, 2013 12:38:30 AM Ignore ican2step Report Abuse Who didn't see this coming?
wshokie12 Champion Author Winston-Salem Posts:1,455 Points:244,035 Joined:Aug 2012	Message Posted: Feb 22, 2013 12:37:10 AM Ignore wshokie12 Report Abuse We need a more efficiently run government.
10k Champion Author North Carolina Posts:21,485 Points:2,281,720 Joined:May 2006	Message Posted: Feb 22, 2013 12:35:30 AM Ignore 10k Report Abuse are some of y'all people just that stupid, or are y'all just flat-out nobama butt-kissers ??..there ain't a darn thing that needs to be done about the gas tax-how bout if those worthless scum in washington start living within the means-you can't get blood from a turnip-i'm tired of paying for y'alls crap, and those worthless politicians crap..
PrinceLH Champion Author Ontario Posts:2,832 Points:565,745 Joined:Jun 2011	Message Posted: Feb 22, 2013 12:34:44 AM Ignore PrinceLH Report Abuse They need to change their tax scheme, for gasoline. Drop sales tax and put a set tax on it. That way, government could get the same amount, no matter what the price of gas is. Then they could put the arm on Big Oil and the speculators and get this economy going again.
unicornpmb Champion Author Buffalo Posts:8,626 Points:1,656,240 Joined:Sep 2005	Message Posted: Feb 22, 2013 12:31:37 AM Ignore unicornpmb Report Abuse Raising the gas tax making it more costly to drive could backfire.
Cableman66 Champion Author North Carolina Posts:2,247 Points:517,585 Joined:May 2011	Message Posted: Feb 22, 2013 12:29:55 AM Ignore Cableman66 Report Abuse What happens when the elected officials in DC run out of our tax money. Well naturally they tax you even more. So get ready for more taxes cause you just know they can't find a way to save money or reduce fraud. Got to pay off all those debts to folks that got them elected. I would be glad to pay CSX for a couple of gallons of diesel fuel if they would haul some of the BS out of DC.
badharley Champion Author Tampa Posts:1,154 Points:766,915 Joined:Jul 2010	Message Posted: Feb 22, 2013 12:28:50 AM Ignore badharley Report Abuse Just GREED.
defiancegasman Champion Author Ohio Posts:7,099 Points:1,327,520 Joined:May 2006	Message Posted: Feb 22, 2013 12:27:47 AM Ignore defiancegasman Report Abuse Billing drivers based on their mileage will NOT get rid of the GAS TAX, just double charge drivers!! Better to raise INCOME TAXES to help fund the roads and allow the top 10% to pay their FAIR SHARE!!! Better yet, ALSO TAX the RECORD PROFITS of BIG OIL to help pay for US roads.
Aviator_Rob Champion Author New York Posts:3,985 Points:440,290 Joined:Mar 2012	Message Posted: Feb 22, 2013 12:26:31 AM Ignore Aviator_Rob Report Abuse And could any of us imagine, @RAE344, that so many mouth-breathers could be suckered by Fox News into believing all of this ridiculous Right Wing rhetoric about unleashing the power of the free market. Meanwhile, those same knuckle-draggers are getting fleeced by the same anti-regulation, free-market charlatans. P.T. Barnum was right. There really is a sucker born every minute. Fox News relies on it.
mlmeng Champion Author Michigan Posts:1,775 Points:618,760 Joined:Mar 2011	Message Posted: Feb 22, 2013 12:25:50 AM Ignore mlmeng Report Abuse skybiker is making sense.
mfeldstein Champion Author Ottawa Posts:8,301 Points:1,956,230 Joined:Feb 2007	Message Posted: Feb 22, 2013 12:23:20 AM Ignore mfeldstein Report Abuse I'm sure they'll find something else to tax.
crreed1 Champion Author West Virginia Posts:2,100 Points:2,550,715 Joined:May 2005	Message Posted: Feb 22, 2013 12:22:58 AM Ignore crreed1 Report Abuse old news
shopnshop Champion Author Dallas Posts:1,125 Points:329,080 Joined:Aug 2008	Message Posted: Feb 22, 2013 12:22:14 AM Ignore shopnshop Report Abuse not good
RAE344 Champion Author Virginia Beach Posts:3,207 Points:688,245 Joined:Jun 2011	Message Posted: Feb 22, 2013 12:22:14 AM Ignore RAE344 Report Abuse Do you think a smart man like our president, with a wife that was never proud of this country until her husband was elected, didn't think this would happen?
Bigwaynef Champion Author South Carolina Posts:11,674 Points:2,108,435 Joined:Dec 2006	Message Posted: Feb 22, 2013 12:21:21 AM Ignore Bigwaynef Report Abuse Trash it...
KrsnaDragon Champion Author Montreal Posts:2,547 Points:559,000 Joined:Nov 2011	Message Posted: Feb 22, 2013 12:21:18 AM Ignore KrsnaDragon Report Abuse Old 'news'.
CCLighthouse Champion Author Hartford Posts:1,131 Points:238,700 Joined:Aug 2012	Message Posted: Feb 22, 2013 12:19:11 AM Ignore CCLighthouse Report Abuse Time for bed folks! : 0
TheeRedRam Champion Author Hartford Posts:3,303 Points:700,335 Joined:Jun 2011	Message Posted: Feb 22, 2013 12:17:31 AM Ignore TheeRedRam Report Abuse Hummmm things to ponder
pastorpaulcg Champion Author Virginia Posts:3,615 Points:775,785 Joined:Dec 2010	Message Posted: Feb 22, 2013 12:17:13 AM Ignore pastorpaulcg Report Abuse unintended consequences
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Feb 22, 2013 12:16:16 AM Ignore tedjm1 Report Abuse I wonder what % of gas tax is used for road repiar & re-building?
boatfloyd Champion Author Jacksonville Posts:1,858 Points:415,675 Joined:Mar 2012	Message Posted: Feb 22, 2013 12:16:03 AM Ignore boatfloyd Report Abuse Raise the gas tax by one cent.
jkpsr Champion Author New Jersey Posts:4,207 Points:1,127,915 Joined:Jun 2005	Message Posted: Feb 22, 2013 12:15:55 AM Ignore jkpsr Report Abuse We need to raise the gas taxes or change to a mileage tax.
singlemom27 Champion Author Ventura Posts:3,248 Points:666,910 Joined:Apr 2011	Message Posted: Feb 22, 2013 12:15:23 AM Ignore singlemom27 Report Abuse I think the cost of administering taxes based on mileage will exceed the benefit. Why not set the gas tax at a percentage of the price rather than a set amount per gallon.
unclenorman Champion Author Tampa Posts:1,479 Points:166,855 Joined:Jan 2012	Message Posted: Feb 22, 2013 12:15:08 AM Ignore unclenorman Report Abuse An alternative to taxing gallons or miles is..................?
Rooster922 Champion Author Wilmington Posts:3,925 Points:682,795 Joined:Jan 2009	Message Posted: Feb 22, 2013 12:15:07 AM Ignore Rooster922 Report Abuse Well . . . . what do you think, bro?
ScottTee Champion Author Detroit Posts:4,527 Points:1,090,320 Joined:Mar 2010	Message Posted: Feb 22, 2013 12:15:05 AM Ignore ScottTee Report Abuse gas only, no mileage tax
pa79th Champion Author Pennsylvania Posts:1,922 Points:1,243,800 Joined:Jun 2007	Message Posted: Feb 22, 2013 12:13:03 AM Ignore pa79th Report Abuse Bull hokey! Everyone, and I mean everyone benefits from the roads...kep the tax on the gas.
BobD2009 Champion Author Long Island Posts:7,129 Points:1,267,485 Joined:Apr 2009	Message Posted: Feb 22, 2013 12:12:29 AM Ignore BobD2009 Report Abuse Government will always find a way to fleece the public.
jrsva Champion Author Virginia Posts:9,999 Points:1,639,950 Joined:Jan 2006	Message Posted: Feb 22, 2013 12:11:08 AM Ignore jrsva Report Abuse “But then, take all tools out and eliminate gas taxes.” Why don’t you want people to carry tools? They do add a little weight and reduce mileage a touch but I would hate to be without a jack and lug wrench when a tire goes flat.
obimerrill Champion Author Cincinnati Posts:1,580 Points:317,415 Joined:Jul 2012	Message Posted: Feb 22, 2013 12:10:27 AM Ignore obimerrill Report Abuse So the politicians will find a way to take from us what the oil companies will lose as we go to more fuel efficient cars!?
regout Champion Author Quebec Posts:3,095 Points:860,405 Joined:May 2010	Message Posted: Feb 22, 2013 12:10:03 AM Ignore regout Report Abuse Users have to pay more.
Matt G Champion Author Boston Posts:4,673 Points:2,800,740 Joined:Jun 2004	Message Posted: Feb 22, 2013 12:09:38 AM Ignore Matt G Report Abuse Good
sjhman Veteran Author Atlanta Posts:416 Points:298,140 Joined:Sep 2008	Message Posted: Feb 22, 2013 12:08:18 AM Ignore sjhman Report Abuse hmm
Rageagainsttm Champion Author Tampa Posts:8,422 Points:1,927,885 Joined:Jul 2007	Message Posted: Feb 22, 2013 12:08:06 AM Ignore Rageagainsttm Report Abuse Find a better way.
naspa Champion Author Cleveland Posts:1,412 Points:379,625 Joined:Jan 2012	Message Posted: Feb 22, 2013 12:07:54 AM Ignore naspa Report Abuse If it comes down to paying for road I agree with a mileage tax. But then, take all tools out and eliminate gas taxes. No double or triple dipping.
bigsranch Champion Author Houston Posts:3,282 Points:1,032,205 Joined:Apr 2007	Message Posted: Feb 22, 2013 12:06:31 AM Ignore bigsranch Report Abuse Ding everybody a flat amount on their registration, based on weight, and eliminate the fuel tax. The semi's that drive across multiple states already do complicated fuel tax reporting based on mileage, so I'm sure that could be factored in.
Glock26 Champion Author Dayton Posts:1,654 Points:658,135 Joined:Mar 2011	Message Posted: Feb 22, 2013 12:06:00 AM Ignore Glock26 Report Abuse Government Greed!!!
ManOfLeisureII Champion Author Philadelphia Posts:2,010 Points:480,875 Joined:Jan 2012	Message Posted: Feb 22, 2013 12:05:01 AM Ignore ManOfLeisureII Report Abuse Why is the answer always a tax increase?