OMB’s Donovan: Obama Open to Gas Tax Increase By Alexis Simendinger
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Are you ready for a federal gas tax increase followed by a state gas tax increase? The federal Highway Trust Fund is running out of money, and some senators have proposed to fix the problem by raising gas taxes. This, however, is the wrong solution because it treats the symptom, and not the underlying reason for the shortfall.
Increasing the gas tax would simply allow Congress to increase spending on often-frivolous projects that do nothing for highway travelers, with no guarantee that it would keep spending below revenues. Thus, in two or three years we would be likely to see the fund once again run out of money.Read More