Saturday, February 21, 2015

Why do they need to raise the tax on the gas for your car?

By John Kubicek

Do they really think that they've dumbed us down enough to get away with this fuzzy math? Just when our cost to drive to work has gone done dramatically because of the drop in gas prices, now the morons in the government want to raise our fuel taxes! Well, not enough of us have been dumbed down that much to fall for allowing a higher tax to drive our cars.

What many people may not realize is that the fuel taxes are based on the number of gallons sold. It has nothing at all to do with a percentage of the purchase price like sales taxes.

Here is the math as it should be, but also includes a little knowledge of basic economics. In the present system with the tax set to the gallons sold, if the price of gasoline goes down, people will buy more, and the revenues from the tax will increase. The lower the cost of the fuel, the more people will drive, and thus, purchase more fuel and PAY MORE TAXES!

So, with a lot more tax revenues coming in, at least in Iowa, there are politicians ready to pass and approve an increase in the fuel taxes. Their story is that our infrastructure needs a lot of improvement. That is a true horror story, being that we have to wonder why the state couldn't finance the work that needed to be done with the revenues that they had coming in. With the lower gas prices, and if my math is correct, and MORE GAS is being sold, why is that revenue increase not quite enough to fund some (needed?) projects?

Could more fuel efficient vehicles have something to do with declines in fuel tax revenues?  Over time, that will become a bigger issue.  But, for now, the high prices for fuel that had occurred over the last six years had a much larger impact on lowered fuel tax revenues. 

When the Republican Governor of Iowa, Terry Brandstadt, favors the increase, I fear for our future.   Increasing a regressive tax like the fuel tax is bad for Iowans, and Americans! Higher fuel taxes will add to agricultural costs, and that will ripple across the economy.   I can not explain how such a mistake could be made by Republicans. The new U.S. Senator from Iowa, Joni Ernst (R), has stated that she also favors an increase in the fuel tax.  I just don't get it.

Let's be smart, and allow the market to adjust to the lower gas prices, and there will be more revenues coming in for both the State of Iowa and the federal government.  Here in Iowa, our representatives in Des Moines need to say "NO!" to a higher fuel tax.   What needs to be done can be accomplished by giving the free market the freedom to "drill, drill, drill" and build the Keystone XL pipeline, and make America energy independent.  Just sayin'....


It is up to us citizens to let our representatives know that we do not approve of an increase in the fuel tax.

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