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Steve Fulop on Energy & Oil
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Variable rate gas tax with automatic inflation increase
We have seen discussions of a "tax fairness" compromise, which would allow for a decrease in taxes to the wealthy in exchange for an increase in the gas tax. However, "tax fairness" shouldn't be about trading one tax for another, but rather should
ensure that everyone pays their fair share. The gas tax solution is essentially a user fee for motorists who use our roads and bridges the most. It is a means by which drivers from neighboring states pay their fair share for using our highways.
A variable-rate structure means that when gas prices increase, the per-gallon tax that motorists pay at the pump will decrease, so that the amount that consumers pay will remain relatively stable. This both protects consumers and our state's
economy from the tax burden that is caused by fluctuating gas prices. Additionally, it is important that our state's gas tax solution is tied to the inflation rate to allow the tax rates to adjust accordingly without legislative action.
Source: OpEd by Fulop for 2017 New Jersey Gubernatorial race
, May 20, 2016
Gas tax is essentially a user fee for motorists
We have seen discussions of a "tax fairness" compromise, which would allow for a decrease in taxes to the wealthy in exchange for an increase in the gas tax. However, "tax fairness" shouldn't be about trading one tax for another, but rather should
ensure that everyone pays their fair share. The gas tax solution is essentially a user fee for motorists who use our roads and bridges the most. It is a means by which drivers from neighboring states pay their fair share for using our highways.
This solution encompasses the true definition of fairness, rather than creating shortfalls in other areas of the state's budget to solve our crisis of funding the trust fund.A variable-rate structure means that when gas prices increase, the
per-gallon tax that motorists pay at the pump will decrease, so that the amount that consumers pay will remain relatively stable. This both protects consumers and our state's economy from the tax burden that is caused by fluctuating gas prices.
Source: Asbury Park Press on 2017 New Jersey gubernatorial race
, May 20, 2016
Page last updated: Jun 30, 2018