tag:blogger.com,1999:blog-10424035.post6171877057259486117..comments2023-09-11T08:58:24.710-06:00Comments on Reach Upward: Thinking “outside- the-box” = Tax IncreasesScott Hinrichshttp://www.blogger.com/profile/11831447472339880148noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-10424035.post-18219808581736747192008-05-15T16:51:00.000-06:002008-05-15T16:51:00.000-06:00Believe me, I do appreciate the user fee concept. ...Believe me, I do appreciate the user fee concept. But it has its limitations.<BR/><BR/>Making gas taxes a percentage of the purchase price is not a good solution. Not only is it extremely repressive (i.e. it's marginal cost is much higher for those that can least afford it), but it is also extremely volatile, making long-term planning -- something key to road building and maintenance -- extremely difficult.<BR/><BR/>Back in 1999 gasoline prices dropped dramatically. Government revenues actually increased because people drove more and used more fuel. Had gas taxes been a percentage of price, revenues would have dropped precipitously, bringing many road projects to a stop and curtailing necessary maintenance.<BR/><BR/>Right now revenues are in decline because people are using less fuel. But the revenue decrease actually is pretty small and gradual.<BR/><BR/>The nice thing about some of the solutions discussed by O'Toole and Carey is that they offer a choice. Those that can afford it can opt to pay more to speed up their commute, but no one is forced to do so. The market sorts it out.Scott Hinrichshttps://www.blogger.com/profile/11831447472339880148noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-13571806408528168302008-05-15T15:34:00.000-06:002008-05-15T15:34:00.000-06:00If gas taxes were a percent of the fuel bill and n...If gas taxes were a percent of the fuel bill and not a penny figure, they would have risen by about $.40 a gallon.<BR/><BR/>Indexing a tax for inflation is somewhat different than a tax increase. In the same vein, a failure to adjust deductions and tax brackets for inflation are actually a tax increases.<BR/><BR/>I have to agree with the statement that Utah has never been on the leading edge of small government conservatism.y-intercepthttps://www.blogger.com/profile/03389285761013186443noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-4914211034114915002008-05-15T09:00:00.000-06:002008-05-15T09:00:00.000-06:00As much as folks complain about the cost of gas, r...As much as folks complain about the cost of gas, raising gas taxes to cover road maintenance makes a lot of sense as it equates to a user fee. As you use more fuel, you pay more for the use of the roads. It's not perfect (a fuel-efficient car driving many miles could pay less than a guzzler that only goes to the grocery store), but it certainly helps make payment for maintenance more equitable.Jesse Harrishttps://www.blogger.com/profile/11468928702710912142noreply@blogger.com