Federal Gasoline Tax

[W. Gray]

The Kansas City Star reported this morning that a panel appointed by Congress has proposed an increased federal gasoline tax, which is currently a little over eighteen cents per gallon.

The proposal is to raise the federal tax by forty cents per gallon--eight cents per year for five years.

After five years, the federal gas tax would be indexed to the inflation rate and increase each year.

There were other proposals to increase or add federal taxes to bus, train, and cargo fares; construct more toll roads; and tax a motorist on how many miles a year he or she drives per year [wonder how they would control that].

The panel also called for more railroad passenger traffic between cities.

If the increased gas tax should pass, look for each state to want inflation indexing for their tax rate.

[T. Sackett]

    I'm not gonna get too excited over this, yet.... it's still in the "just talkin" stage.  But if that should ever come to pass, that's sure gonna have a negative impact on millions of budgets, and break some people, while others may see it as an opportunity to go into the bicycle or motorcycle business, while some of the obese people may find themselves walking (that takes me in  )

[flo]

right up there with taxing cigarettes but you don't see them adding taxes to liquor - that would get into their fun.

[W. Gray]

The Colorado governor has proposed subjecting gasoline sold in the state to the state sales tax (state only rather than including the municipal and county sales tax).

The state sales tax rate is currently about three percent.

The proceeds would go entirely toward road infrastructure.

If a fill up costs $30 that would add 90 cents to the total.

The only thing wrong with that is they would be double taxing about 40 cents of the cost of a gallon of gasoline, since the current Colorado gas tax is 22 cents and the federal tax is 18.4 cents.

[T. Sackett]

With this being an election year, I wouldn't think the politicians would be passing something unpopular like that.....it might cost them the election.

[Bonnie M.]

I think people have awfully short memories!