With Gas Prices Down, Could Gas Taxes Be Going Up?
Rich or poor, young or old, no one likes high gas prices – with the possible exception of oil and gas companies. In any case, the recent drop in gas prices around the country has no doubt brought some relief to just about everyone in America, including big corporations that own large fleets of vehicles.
However, just when everyone was starting to get excited by the continuing decline in the prices at the pump, some lawmakers think that now might be the perfect time to add a little more tax to price of gas. The federal gas tax currently sits at 18.4 cents a gallon and it hasn’t increased since 1993. In addition to the federal gas tax, most states also charge additional gas taxes, with the average rate per state being 23.5 cents a gallon.
Despite the fact motorists hate any type of increase in gas prices, lawmakers have seen the real value of the gas tax diminish thanks to inflation since 1993. In fact, the gas tax only generates about two-thirds the amount of real dollars it did 21 years ago. Because the real buying power of that gas tax revenue has declined that means there is now less money to repair bridges and roads.
Because America’s roads, both locally and nationally, are reportedly in such bad condition and the federal Highway Trust Fund is essentially broke, lawmakers are seriously considering raising gas prices.
However, that being said, the conversation about raising gas taxes has yet to reach the forefront of hot topics in Washington, as the government still has many other issues to settle that are more pressing.
Meantime, if you need help saving a little more on your next return or planning for this coming year’s taxes, then contact GROCO today by clicking here.
Where Do Californians Stand On Taxes?
Where Do Californians Stand On Taxes? California’s high ranking on the tax meter is well documented. The state is among the highest in the nation for both income taxes and business taxes. It ranks high in several other tax categories as well, including sales tax, property tax and even the gas tax. The Golden State…
Why Do California’s Tax Problems Continue?
Why Do California’s Tax Problems Continue? It’s the classic adage made famous from the movie Robin Hood: “Rob from the rich and give to the poor.” Although Robin Hood may have meant well and his actions noble, the idea of taking more from the rich to give to the poor is not always wise when…
Why Do IRS Audit Numbers Continue to Decline?
Why Do IRS Audit Numbers Continue to Decline? No one would voluntarily go through an audit and, in fact, many people would rather experience a lot of other unpleasant situations over going through an audit from the IRS. Let’s face it, being selected for an audit can be a spine-curling experience for many taxpayers. In…
With Congress Now Back What Will it Mean for Taxes
With Congress Now Back What Will it Mean for Taxes Fall is here and that means the rain and wind are on their way back. Congress is back as well and they have a lot to talk about. It’s not exactly clear how much they will get done in the next three months, but they…