Let's talk about the gas tax

The title read, in today's Times of Trenton: Search continues for ways to save transportation fund. There is much talk in the article about refinancing the Transportation Trust Fund's debt, which will only increase the total of the debt, and should be avoided as a gimmick that increases the load down the road. Refinancing the debt in the past has increased the total debt load and length, basically helping to put us where we are now.

So, should we raise the gas tax?

Our Fair State currently adds 14.5 cents to every gallon of gas bought here, which sounds high until you realize that we have one of the lowest gas taxes in the nation. (Alaska, in case you're wondering, takes the least. Table here. ) That's why everyone you know from out of state buys their gas on the turnpike, because it's so cheap! (I never have the heart to tell them that if they got off the turnpike, it'd be even cheaper.)

The arguments against raising the gas tax are varied but they come down to these:

1. Disproportionate to the lower income citizenry: a regressive tax

A wonderful report by New Jersey Policy Perspective titled Perspective on The Gas Tax and Car Registration Fees discusses this in full, but essentially it comes down to this: No, it's not regressive. The idea that a resource consumed equally by persons at all economic levels will disproportionately affect lower-income people is not applicable here- gasoline is not consumed at the same rate amongst economic distribution. The report quotes a study from 1997:

People from low-income households are more likely to walk to work and are more likely to use public transit - buses as opposed to trains - to get to work.
People in low-income households are nearly twice as likely to walk for other than work activities as well. Because so many trips are made by walking, the space in which people in low-income households travel is more constricted than for others. For low-income single parent households, about 66 percent of trips are three miles or less.
...
John Pucher, a professor of transportation planning at Rutgers University, used the same NPTS data to show that 80 percent of households with annual incomes of less than $15,000 either own no car (32 percent) or own only one car (48 percent). In contrast, only one percent of households with annual incomes that exceed $80,000 are without a car. And nearly 90 percent of households with income above $80,000 own two cars or more.
...
It is starting to become clear, then, that the vehicles that cost the most and, arguably, take the heaviest toll on the roads upon which they are driven, are owned by the people best able to pay higher taxes and fees.

So, to this argument: not really, no.

2. Out-of-state drivers buy gas in NJ, and they'll stop if we raise it.

Weak at best. First, here's the gas taxes in our neighboring states: Pennsylvania adds 31.1; New York, 31.9, plus county sales tax; Delaware, 23. Even if we add a 10 cent tax on to ours now, we're still substantially lower than NY and PA. (DE residents won't cross the bridge to buy gas then, of course; but I have to doubt sincerely if they ever really were, with a $3 toll on the Del Mem Br.)

3. We don't like it.

Oh, here's a big argument: We hate the gas tax, and we don't want it raised. Apparently, this is a big deal; the Quinnipiac poll in January shows that 69% of residents of Our Fair State don't want to raise the gas tax even to pay for roads and road work.

Unfortunately, of the arguments presented here, this one probably carries the most weight in Trenton. The people who vote on the increase in gas tax need you to vote for them, and we don't like raising taxes here in Our Fair State. Even though our State and Local Tax burden ranks 14th in the nation but our personal income ranks fourth, we feel we are unfairly, highly taxed here and we demonize anyone who tries to increase taxes.

Should we increase our gas tax in the face of a failing Transportation Trust Fund? We haven't raised our gas tax in New Jersey since 1988, and we're out of other gimmicks. Even if there are other viable options for the TTF, it's the best decision in the face of a crushing debtload. It will be damaging politically, yes; but folks, it's time. Raise it.

(cross-posted at bluejersey.net)