After enjoying zero add-ons to their state gas tax since 1988, New Jersey residents are about to get a shock at the pumps.
The Garden State will raise its gas tax by 23 cents a gallon as early as next week in order to fund state infrastructure projects, the New York Times reports. The move raises the tax from the second-lowest in the country (14.5 cents per gallon) to above the national average.
As bad as this may seem to residents used to low, low pump prices, there’s a trade-off. (Read More…)
The Garden State remains the cheapest place to fill up in the Northeast, and you can thank government indecision for it.
Lawmakers in New Jersey can’t decide on what to do about their state’s bone-dry transportation fund, and residents are equally divided on how to pay for future road projects. That means pump prices will stay low for the time being. (Read More…)
A looming bump in New Jersey’s gas tax would mean fewer drivers from neighboring states crossing the Hudson and Delaware Rivers to take advantage of the state’s famously low pump prices.
The state’s transportation fund is almost empty, roads and bridges need repairs, and Democrat lawmakers and select Republicans are putting pressure on Governor Chris Christie to send the gas tax skyward, according to the New York Times.
Somewhere between storming the beaches at Normandy and marching into Berlin, General Dwight D. Eisenhower became enamored with the German Autobahn system of superhighways, and so resolved to create a similar system in the United States — or so goes the legend.
After the war, America began to build out from its crowded urban cores, placing new homes and businesses where before there was farmland and wilderness. At first, these new developments were reachable only by hastily expanded surface streets, and longer distance trips used the U.S. Highway system of two-lane roads first designed in the 1920s.
For a forward thinking superpower, this was not enough. Enter the Interstate Highway System — and the Highway Trust Fund that literally paid to pave its way.
California electric vehicle drivers may pay $100 more in registration fees each year under a proposed bill that aims to raise $3.6 billion each year through gas taxes and fees that would repair and maintain California’s roads, according to the Associated Press (via Autoblog).
“Everybody uses the road and if some pay and some don’t then that’s an unfair situation that’s got to be resolved,” said Jim Whitty, manager of the Oregon Department of Transportation’s Office of Innovative Partnerships and Alternative Funding.
Ah, yes. As with any number of current governmental activities, the rationale for per-mile taxation will be fairness.
Who’s ready for some politics? With the presidential election still over 14 months away, recent Iowa straw poll winner Michelle Bachmann is upping the campaign promise ante by telling a Greenville, SC crowd
The day that the president became president gasoline was $1.79 a gallon. Look at what it is today. Under President Bachmann, you will see gasoline come down below $2 a gallon again. That will happen.
Without even taking a side in the muck of presidential politics, it’s plain to see how ridiculous this statement is. As Politico helpfully notes:
Bachmann didn’t detail how she would cut the price of gasoline, which is tied to the global price of oil. [Emphasis added]
Personally, I think gas should probably be taxed to a point where Americans pay about what the rest of the world does, in order to pay for the externalities of oil consumption. Most auto execs agree, arguing that America’s artificially low gas prices play hell with product planning. But even (or is that especially) if you’re a hard-core anti-tax free-market fundamentalist, Bachmann’s statement should be treated with scorn. After all, markets, not presidents, should be setting oil prices. But what’s principle (or even good practice) when compared to the need for political pandering?
The average price of regular unleaded gasoline was $3.96 this week, an increase of 38 percent over the same time last year. US Senator Rand Paul (R-Kentucky) on Tuesday proposed to temporarily reduce that cost by 18.4 cent cents by suspending the federal gas tax. Under the freshman lawmaker’s plan, the highway trust fund would be replenished by reducing payments made to foreign governments.
“Let’s have a gas tax holiday,” Paul said in a floor speech. “Let’s take the money from foreign aid and let’s give it back to the American people who worked hard to earn it…. That would help people, that would lower the price of gasoline and that would be a stimulus to the economy.”
With the federal deficit balooning out of control, President Obama’s National Commission on Fiscal Responsibility and Reform has publicized its preliminary proposals, and goodness are there a lot of them. But only one of the commission’s proposals gets to the heart of this nation’s automotive future: a proposal to increase America’s gas tax. Federal fuel taxes currently stand at 18.4 cents a gallon for gasoline and 24.4 cents for diesel fuel, but the commission has proposed a 15 cent per gallon increase, to take effect starting in 2013.
CSM Worldwide seems to think so, telling Automotive News [sub] that new compacts from Ford and Chevrolet are being pushed into the market to comply with increasing fuel-efficiency and CO2 emission standards. If gas prices stay steady, CSM’s VP for Forecasting, Michael Robinet says “extreme pressure to channel smaller vehicles in the market due to CAFE and emissions standards will raise incentives and lower profitability.” “It is very possible that U.S. automakers will not achieve their objectives of selling small cars at a profit,” adds CSM CEO Craig Cather. The crux of the argument is that CAFE ramp-ups to 35.5 MPG by 2016 create incentives for automakers to produce small cars without corresponding consumer demand. Luckily there’s a planned gas tax hike for that.