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.
Collecting Classic Cars with Ardel Brown
Collecting Classic Cars with Ardel Brown Alan: I’m here today with Ardel Brown and we’re going to be looking at his car collection today. Alan: Ardel this is quite the man cave that you have here Ardel: Well it’s taken a little while to get it developed and fill it up, but it’s pretty full…
Study Shows Benefit of Lower Corporate Taxes
Study Shows Benefit of Lower Corporate Taxes Raise taxes on big business! That’s the cry of democratic lawmakers. Democrats argue that keeping the corporate tax rate high will help increase income for workers. While it’s true that wages have basically remained stagnant over the last decade, and the cost of living has gone up, increasing…
Costly Tax Mistakes Entrepreneurs Have to Avoid
Costly Tax Mistakes Entrepreneurs Have to Avoid Anyone can get into trouble with the IRS, including businesses. It seems as though entrepreneurs are especially susceptible to tax troubles, many times because they simply aren’t aware of all the tax pitfalls that lay ahead. However, many of these mistakes can be easily avoided. The key is…
Will the Wealthy Start Exiting California if Tax Hikes Are Extended?
Will the Wealthy Start Exiting California if Tax Hikes Are Extended? Just about everyone is aware that California has one of the highest tax rates in the country. So it wasn’t much of a surprise when voters passed a temporary tax increase back in 2012 that raised the state’s marginal income tax rate to 13.3…