I will believe the Saudis don't see any upcoming problems with Ghawar when they cancel one of their projects due to low oil prices. If they continue to be full steam ahead with increasing their capacity then I think they are aware that Ghawar may not be as robust in 5 years time as they would like us to believe.
WASHINGTON - The political vision of a summer gas tax holiday died a quick death in Congress, losing to a view that federal excise taxes on gasoline and diesel fuel will have to go up if they go anywhere.
Despite calls from the presidential campaign trail for a Memorial Day-to-Labor Day tax freeze, lawmakers quickly concluded — with a prod from the construction industry — that having $9 billion less to spend on highways could create a pre-election specter of thousands of lost jobs.
Now, lawmakers quietly are talking about raising fuel taxes by a dime from the current 18.4 cents a gallon on gasoline and 24.3 cents on diesel fuel.
Quote:
Trust fund deficit expected
Just three years ago, that trust fund enjoyed a surplus of $10 billion. Even without a tax freeze, the fund is projected to finish 2009 with a deficit of $3 billion. That that could grow as Americans drive less and buy less gas because of higher pump prices.
The consequence is that only about $27 billion in federal money will be available next year to states and local governments for new infrastructure investment even though the current highway act calls for spending $41 billion a year. For many, the solution is to raise rather than suspend or cut federal fuel taxes, which haven't changed since 1993.
The Transportation Construction Coalition, a group of industry companies and unions, said that if Congress does not do something about the shortfall, states will lose about one-third of their road and bridge money in the budget year starting Oct. 1. That would put 485,000 more jobs at risk.
That message carried the day this summer. But now Congress has the bigger task of dealing with the short-term deficit crisis in the fund and coming up with a new spending plan, including revisiting the gas tax issue, when the current six-year, $286 billion highway-transit act expires in September 2009.
Quote:
The nonpartisan National Surface Transportation Policy and Revenue Study Commission concluded in a report this year that the U.S. needs to spend $225 billion annually over the next 50 years to create a highway and transit system capable of sustaining strong economic growth. Current spending, at federal, state and local levels, is about $90 billion a year.
Among other revenue-raising possibilities, the commission recommended gradually increasing the current federal fuel taxes to 40 cents a gallon.
Just the beginning... _________________ Clothing should be optional.
Posted: Sat Jul 19, 2008 7:48 pm Post subject: Re: Gas tax increase coming?
Can't see this happening before the election in November. Can you imagine what an opponent in a House race could do with a vote to raise the gas tax right now?
Posted: Sat Jul 19, 2008 9:17 pm Post subject: Re: Gas tax increase coming?
The deficit was from transportation funds being diverted to Bear Stearns's CEO & $225 billion for bank loan auctions. 3 years ago, interest was 5% so of course there was less money chasing building materials. There's nothing a $0.24 tax will fix that an $0.18 tax couldn't. _________________ People first, then things, then dollars.
There will be enslavement, cannibalism, & zombie invasions.
Last edited by heroineworshipper on Sat Jul 19, 2008 9:19 pm; edited 1 time in total
Joined: Apr 05, 2005 Posts: 1643 Location: Springsteen Country (NJ)
Posted: Sat Jul 19, 2008 10:48 pm Post subject: Re: Gas tax increase coming?
idiom wrote:
It will encourage ppl away from gas. .18c has failed at that.
To what, horses, bicycles or walking? Those are the only sustainable substitutes. _________________ Joe P. United Political Debate
"Only when the last tree is cut; only when the last river is polluted; only when the last fish is caught; only then will they realize that you cannot eat money." - Cree Indian Proverb
Posted: Mon Jul 21, 2008 10:32 am Post subject: Re: Gas tax increase coming?
Big media just stirring the ignorant masses with the "could" and "might" stories. Oil climbing is a non-story right now so lets keep everybody worked up in a frenzied lather over the unlikely chance that the gov "might" stick a tax on gas. So stupid.
Joined: Sep 08, 2005 Posts: 764 Location: Atlanta, GA
Posted: Mon Jul 21, 2008 11:05 am Post subject: Re: Gas tax increase coming?
What most people don't realize is that Federal gas taxes are far too low as a percentage of price of a gallon of gasoline. Back when gas sold for a dollar a gallon, the federal tax was close to 20% of a gallon of gasoline. To maintain that same ratio at $4 a gallon, the tax would need to be quadrupled, to approx 74 cents a gallon. I say make it a dollar....and cut highway spending by HALF. Rest of the money needs to go towards mass transit, trains, etc.
And while we're at it, let's bring back the Gas Guzzler tax on ALL low-mileage vehicles sold in the US, no exceptions whatsoever. And make this tax so onerous that the gas hogs will be all but extinct even if gas prices level off or go down in the near future. _________________ Nowhere to run, nowhere to hide...
...and the meek shall inherit the Earth!
Posted: Mon Jul 21, 2008 12:35 pm Post subject: Re: Gas tax increase coming?
Until 2005 or 2006, the ethanol subsidy came from the highway
trust fund, the gas tax. That didn't amount to much in the earliest
years, but added up over the years, particularily as the ethanol
volume increased.
It's never been indexed to inflation and the gas tax should be.
Everything goes up due to inflation, including the cost of building
and repairing roads. Increasing the gas tax is one of the biggest
no-no's on the federal level, so it's usually years between the
increases.
Posted: Mon Jul 21, 2008 2:10 pm Post subject: Re: Gas tax increase coming?
US fuel taxes at 45-50c/gal (including fed and state) didn't pay for road costs even when asphalt, diesel, and steel were at their cheapest. 50c/gal doesn't even begin to pay, now. Of course, the Dept of Transportation plays games with the fund (transit and tourism costs out of the fuel-tax fund), but far more is spent on road projects out of general revenue.
Any road spending that is not paid for out of fuel tax means that people who drive less subsidize people who drive more. Of course, most of the world subsidizes driving in one way or another.
I am still quite curious how we're going to pay for roads with more electric cars showing up. Most of them don't weigh much, but thousands of them do push the need for more lanes, bypasses, etc. GPS trackers? Specially metered electric? Shift to general revenue/debt? _________________ At 1% annual growth, human bodies will incorporate every gram in the observable universe in approximately 10,170 years.
Posted: Mon Jul 21, 2008 2:58 pm Post subject: Re: Gas tax increase coming?
I read a report a while back (sorry...didn't save the link) that clearly made the point that commercial truck traffic caused a very large percentage of the road damage. Even though the trucking companies pay a big vehicle tax along with the diesel tax it didn’t come close to paying for what one might call their share of the system. The conclusion was that the trucking industry was thus effectively receiving a huge subsidy. But back to the chicken and egg situation: raise trucking fees quickly and inflation jumps even more.
Posted: Mon Jul 21, 2008 6:02 pm Post subject: Re: Gas tax increase coming?
Yup. It seems that damage increases faster than weight...
Quote:
Overweight vehicles pay less for the deterioration they cause to the highways than motorcycles, automobiles and light trucks. Studies conducted by the U. S. Federal Highway Administration (FHWA) have compared the cost of the wear and tear to the highway caused by the operation of motorcycles, automobiles, light trucks, vans and heavy trucks with the revenue these vehicles generated from fuel taxes and registration fees. The results of the studies disclosed that heavy trucks cause more damage but pay for a smaller share of this damage than automobiles, motorcycles, pickups and vans.[3] Pavement cost analyses conducted for the Heavy Vehicle Cost Responsibility Study demonstrated a sharp increase in pavement costs when axle loads exceed the federal limits. In fact, pavement damage was found to increase exponentially with axle loads, resulting in significant damage by vehicles with heavy axle loads.[4] In addition, results of the Texas Highway Cost Allocation Study indicated that certain truck types contribute only half of their assigned costs of building and maintaining the highway system, whereas passenger cars contribute more than their assigned cost.[5]
I've seen info stating that one truck at 80,000lbs causes as much damage as nearly 10,000 cars, but nothing in the way of proof. _________________
Posted: Mon Jul 21, 2008 6:24 pm Post subject: Re: Gas tax increase coming?
yesplease wrote:
I've seen info stating that one truck at 80,000lbs causes as much damage as nearly 10,000 cars, but nothing in the way of proof.
I was looking for the original study this afternoon; unfortunately, though, to no avail. It was widely paraphrased (as a GAO study, or an AASHTO study), though, in everything from Congressional subcommittee hearings to presentations by various state DOTs to their respective governments. Thus, I suspect the veracity of the statement is not without merit. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Posted: Mon Jul 21, 2008 6:51 pm Post subject: Re: Gas tax increase coming?
Here's something (scotty rocks btw). According to it one 18,000lb truck axle load is equivalent to 1,850 3,000lb Cadillac axle loads and 34,100 1,500lb matador axle loads. I bet concrete roads would last for as long as the climate allowed w/ small EVs. _________________
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