A hundred years ago, there were no Interstate Highways. In fact, most major roads between towns were dirt or rock. There were not many cars on the road, but Henry Ford had other ideas. As the car gained acceptance, roads had to be improved and built. The logical choice was the community, and the government. In those days mostly roads were built by local and state governments. It was good in that they could promote tourism. But where would the money come from? Taxes of course. The first gas taxes were collected in 1931. With this money, roads could be built, and Americans started on our era of mobility.
The other source of revenues were tolls. Tolls helped pay for specific roads and bridges, and seemed fair in that those who used the infrastructure were paying for it. Tolls still exist today. Soon a National Highway system developed. It used existing roads to link together our nation. There was a dual use, in that the Army was able to move easier as well. Under President Eisenhower, the Interstate Highways were born. These too had a dual purpose. When engineering these highways they were designed to accommodate aircraft as well. If you noticed, there are long stretches where there are no obstructions over the roadway, they made pretty good back up runways, just in case, during the cold war.
Through all of this gas taxes and tolls paid for expansion and maintenance of the roads. As needs rose, so did gas taxes. The first gas tax was a mere penny a gallon. Today, it is 18.4 cents. There are also state taxes on gasoline as well, so the total tax would depend on where you live. That is why if you travel the roads, some states have cheaper gas than others.
Another thing hit us in the 1970s, the supply crisis when OPEC cut off supply. Prior to this time, gasoline was significantly cheaper than it is today. But cars were becoming more important. Suburbs that were getting farther away from the city center meant that not only did people have to drive more, but often they needed more than one car. Two car garages became the standard people looked for in new houses.
As demand rose, supply rose, just not as fast. OPEC has been pretty successful in controlling supply. So much of our increases has been through artificial control of supply. At the same time, fears grew that fossil fuels would eventually run dry. Are you old enough to remember President Carter' "Be Thrifty, Drive 50" campaign? Since that time, the regulators in Government have pushed for higher mileage per gallon of gas. And auto makers responded.
The other day, I read an article about how now the gas tax is just not enough. I guess we have been too good at shepherding our resources, and now government says they cannot maintain and expand with the tax alone. We are also more connected than ever in our lives. Mobile phones, and smart cars have provided them with a new scheme. Charge a toll based on how far an individual car drives. They can install a device that would use GPS to track the total miles driven, and issue a bill for those miles. I did not see an estimate of how much the charge would be, perhaps it is a trial balloon.
This blogger generally opposes new taxes, preferring that government learns to budget effectively, and works to use every penny as efficiently as possible. And this is no different. If the government, through our representatives decides this is a good thing, fine, but then the gas tax should be eliminated. Somehow, I don't think the general population will support this. Most of our driving is to get to work, and there is nothing we can do about those miles, except perhaps move. This move would also probably cause the price of gas to rise, especially if they eliminate the gas tax, you don't expect the price to fall do you?
When I mention that government is not the most efficient user of revenue, let me give an example. A few years ago, a major artery around here, which has been in use since the earliest days, was determined to need to be rebuilt. That was probably a good decision. They closed the roadway for a couple years to do this. Most of us expected a much wider road with more lanes, after all this road backs up every day to congestion. But that is not what happened, they literally tore up the existing highway, laid a new road bed, then paved over the top, not wider, not less curvy, just new pavement. So today, back ups still happen daily, but at least when not backed up the ride is smoother.
It is important that we react to this tax grab, as it is with other tax grabs. Our politicians, both sides, have a insatiable need for more revenue. And the waste in government is not unknown. It is time we decide that government needs to be more efficient, or they will not get new revenue. After all it is our money.
Spend Wisely!
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