Sen. Carper rings the bell for raising the federal gasoline tax

In this space, I have been pretty tough on Congress for its longstanding inactivity in regards to getting a new long-term surface transportation authorization to become a reality.

I won’t get into the reasons as to why, but infighting and a lack of “political will” often are things that are top of mind, when it comes to some of the top-level reasons as to why this is the case. But the thing is despite the fact that we have seen more than 30 short-term extensions for surface transportation funding to remain intact in recent years, a living on the edge of your seat approach if there ever was one, there have been good ideas for how to fix things for the long run floated by Congress, especially in recent years. But as per the usual, Congressional dysfunction continues to win out, leaving things in a perpetual state of flux.

It does not have to be this way, though, and perhaps one day it won’t be, but for now it remains an exasperating day-to-day endeavor, while we all wonder how and when things will truly be remedied and our infrastructure continues to stumble and crumble.

Speaking of good ideas coming from Congress, one came from Senator Tom Carper (D-Del.) this week.

Carper introduced a bill call the TRAFFIC Relief Act, which pledges to raise U.S. gasoline and diesel taxes (that have remained at current levels of 23.4 cents for diesel and 18.4 cents for gasoline since 1993), as well as expand tax credits, too.

The gasoline tax is the primary funding mechanism for the United States Highway Trust Fund, whose funds are allocated for federal highway, transit, and highway safety programs.  Diesel taxes represent about 90 percent of Highway Trust Fund (HTF) net revenues, which are vital when it comes to fixing, repairing and developing the country’s transportation infrastructure.

For those in Congress or elsewhere whom don’t think raising the federal gasoline tax is needed, consider this data from the Department of Transportation’s Highway Trust Fund Ticker: based on current spending and revenue trends, DOT estimates that the Highway Account of the HTF will encounter a shortfall before the end of fiscal year 2015, with the Highway Account having kicked off FY 2015 with about $9.2 billion in cash.

What’s more, the HTF regularly pays out more than it takes in due to things like inflation, more fuel-efficient cars, and more people driving less, among other factors.

So, what does Sen. Carper aim to do with the TRAFFIC Relief Act?

According to a statement issued by his office, it would raise fuel taxes by four cents a year for four years and subsequently index them to inflation (a “novel” concept that honestly should already have been part of the Congressional playbook for years by now at this point, given the years of shortfalls and funding issues).

Not taking meaningful action, Carper noted, has taken a toll on how things to be sure and the U.S. continues to pay the price in the form of lost jobs, productivity, and overall economic growth.

“Rather than lurching from crisis to crisis, increasing country’s debt, and borrowing more money from foreign governments to pay for our transportation system, I say it’s time to do what’s right,” Carper said in a statement. “At a time when gas prices are some of the lowest we’ve seen in recent memory, we should be willing to make the hard choice to raise the federal gas tax. To balance the 16-cent cost of a gas tax hike, I’ve suggested making permanent certain expiring tax cuts that will directly benefit hard-working Americans.”

It is hard to argue with that point of view. In short, more needs to be done and not enough progress is happening, as evidenced with ongoing short-term extensions for surface transportation funding that is ostensibly always on the edge of insolvency.

As usual, what happens next is anybody’s guess, but some form of raising the federal gasoline tax would clearly represent a step in the right direction.