March 31, 2015

WE ARE ALL PIGOVIAN NOW:

How Red States Learned to Love the Gas Tax : In Washington, raising the levy on fuel is a non-starter. But Republican legislatures that actually have to balance their budgets are finding increases indispensable. (RUSSELL BERMAN, MAR 31 2015, Atlantic)

Don't believe the axiom that Republicans reflexively oppose tax increases: Outside the Beltway, it just doesn't hold up.

States across the country are raising their fuel taxes to pay for the upkeep of deteriorating roads and bridges, and in a surprising number of those states, the governors and legislative leaders pushing those changes are Republicans, not Democrats. In Utah, GOP Governor Gary Herbert signed a law last week passed by the state's Republican-controlled legislature that raises the gas tax by 5 cents and ties future increases to prices at the pump. A month ago, Iowa's Republican governor, Terry Branstad, approved a gas-tax hike that sailed through the legislature in under two weeks. Top Republicans in Georgia, Michigan, and South Dakota have proposed similar increases, and as many as 12 states could raise fuel taxes in 2015 alone, after six did so in the last two years, according to an analysis by Carl Davis of the Institute on Taxation and Economic Policy.

The transition to taxing consumption instead of income/investment/savings is one of those impossible/inevitables.

Posted by at March 31, 2015 1:22 PM
  

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