Jabberwocky Design

Apparently there are at least a few people working in the government who realize that the most popular choices aren’t always the best.  While it will be decried by consumers, a Congressional commission wants to raise the taxes on gasoline:

The National Commission on Surface Transportation Infrastructure Financing, a 15-member panel, wants to raise the federal gasoline tax from the current 18.4 cents per gallon to 28.4 cents per gallon. Diesel fuel would see a raise of between 12 and 15 cents per gallon.

At the same time, the commission will recommend tying the fuel tax rates to inflation.

I’ve already read a few articles claiming that this us somehow “taking advantage” of the currently low price of gas.  What is not mentioned is how small a tax 18.4 cents a gallon is when the price is over $4/gallon.  A gas tax is a much more efficient system than tolls or excise taxes.  As far as I’m concerned, the entire transit system should be paid for by gasoline tax, including public transit, infrastructure improvement, and alternative fuel technology.  The tax could be 100% of the current price, and as we saw over the last year, people would still buy their gas.

Not to mention the other positives that come from the pressures of high-cost gasoline.  The Department of Transportation says Americans drove “100 billion fewer miles during the 12-month period between November 2007 and October 2008 compared with the prior year,” mostly as a result of gas prices.  How quickly will people return to their old driving habits if prices continue to drop?

Raising the gas tax is a good idea, but the change should be more significant, even if it were gradual.  I think a tax of 20% is not unreasonable; percentage taxes have the added benefit of pressuring conservation more when the supply is tight, exactly as it should.  And a significant amount of the tax revenue should be invested in emerging technologies that may someday make the gas tax completely unneccessary.