The Federal government want to increase gas taxes, they say its only a few extra dollars and the money is to be used to repair the roads and bridges.
The current federal gas taxes go into the general fund and a small portion go to the roadways.
Here’s why raising gas taxes is a bad idea.
Increasing the federal gas tax to fund new infrastructure projects is the wrong approach. Not only would it undermine the benefits of recent tax-reform legislation, it would disproportionately hurt the least fortunate – who pay a higher percentage of their income in energy costs – and lead to higher prices on goods and services throughout the economy.
The Tax Cuts and Jobs Act of 2017 was a historic achievement, the benefits of which are already being realized. But increasing the gas tax would effectively undermine recent tax cuts by clawing back hundreds of billions of dollars—roughly 25 percent of the total benefit from tax reform—from low-and middle-income Americans at a time when they thought they were finally getting some relief. In 2016, the U.S. consumed 1,140 gallons of gas per household. Based on that average, American households would spend an extra $285 on gas each year under this proposal.
Maintaining core infrastructure is an important function of government that should be carried out in the most efficient and effective manner possible.
Efforts to improve our nation’s infrastructure should focus on maximizing taxpayer dollars by targeting priorities such as roads and bridges, eliminating wasteful spending, removing regulatory barriers that delay projects and drive up costs, and ensuring there is proper oversight and accountability.
Think about these facts and speak out to your elected officials.
Sign up for the Car Coach Reports www.carcoach.com
Lauren Fix, The Car Coach® is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. Post your comments on Twitter: @LaurenFix or on her Facebook Page.
© 2022 Newsmax Finance. All rights reserved.