A DOZEN REASONS FOR RAISING GASOLINE TAXES

This article presents 12 reasons for supporting higher motor fuel taxes. These reasons include arguments that: (1) motor fuel taxes are lower now than in the past; (2) fuel taxes are below levels in other countries; (3) fuel taxes are below their theoretical optimum; (4) drivers show high tolerance for fuel price changes; (5) the cost of transportation projects continues to rise faster than revenue; (6) congestion is growing in part because not enough is being spent on new capacity; (7) relative declines in fuel tax revenues increase reliance on non-transportation related taxes to support transportation projects; (8) the relative decline in fuel tax revenues is increasing borrowing for transportation projects and programs; (9) fuel taxes have low collection costs and are relatively fraud-proof; (10) fuel taxes are user fees that send price signals to motorists to use the transportation system more efficiently; (11) fuel taxes are fairer for lower income groups than other alternatives; and (12) fuel taxes make it easier to transition to better user fees in the future.