This isn’t the big, $2-$4 gas tax that some are calling for, but we may see a modest federal gas tax increase in the near future. It currently stands at 18.4 cents a gallon, and some in Washington want a 50% increase. Why? No, not some grand vision for weaning us off oil, or encouraging the automakers to make small cars. Just a way for the government to raise money in tight times.
AP: Motorists are driving less and buying less gasoline, which means fuel taxes aren’t raising enough money to keep pace with the cost of road, bridge and transit programs.
A federal commission created by Congress to find a way to make up the growing revenue shortfall in the program that funds highway repairs and construction is talking about increasing federal gas and diesel taxes.
We’re not sure where we are on the gas tax Laffer curve right now. It could be that an increase in price means less driving and thus a minimal revenue gain.