Original Post (and video)
August 16, 2011
by Roger Gray
Most of us know that gasoline is taxed by both the state and federal governments. When you buy a gallon of gas, both Uncle Sam, and Uncle Sam Houston take a bite. But what if the federal tax just went away? Given the divisions in Congress these days, it’s a possibility.
The state of Texas fuel tax adds 20-cents to a gallon of gas. That figure was set in 1991 and hasn’t been raised since.
The federal fuel tax is 18.4-cents a gallon, and it was raised under Presidents Reagan, Bush – one, and to its current level under President Clinton back in 1993.
It began in 1932 and goes into the Highway Trust Fund for maintenance of the highway system and mass transit projects. And it expires on September 30.
“I don’tmind paying the gas tax If it goes toward roads and highways,” says Smith County Republican Party Chair Ashton Oravetz.
In normal times, it is no big deal, but then again, neither is the debt ceiling. And as we just found out, these aren’t normal times.
“It’s been extended numerous times in the past and always had bipartisan support,” says Carl Davis, Senior Analyst with Citizens for Tax Justice.
“Urban people say, well if we’re going to go for an increase in the gas tax, then part of it should go to urban transit,” Oravetz declared. “ And to me, that’s wrong.”
“Every person that’s using mass transit is taking another car off the road,” Davis responded. “And so that’s providing a very distinct benefit to drivers.”
But even if Congress removed it, would you see the difference at the pump?
When re-authorization of the Federal Aviation Administration was delayed, the federal aviation tax was not collected. Well…not collected by Uncle Sam.
“I don’t expect this to translate directly into an 18.4-cent drop at the pump,” Davis told KETK
Most expect the tax to be renewed, but not without a fight.
“You’d think if there would be any tax that Republicans would like it would be this one. But you still hear a surprising amount of opposition to it,” Davis said.
“I would be in favor of renewing it with no diversions, because that to me is critical,” Oravetz concluded.