What They're Saying:

Raising the Gas Tax is Wrong for America
Federal and State Leaders Don’t Support Increasing Gas Taxes

Iowa Senator and Senate Finance Committee Chairman Chuck Grassley: Sen. Chuck Grassley, ranking member of the Committee on Finance, with jurisdiction over taxes, made the following comment on the prospect of raising the gas tax. "This is a disappointment and probably even a big waste of tax dollars. A special commission came up with an old, cold, bad idea. We have economists saying the increase in energy costs is adding to recession concerns, while this commission reportedly will say we should add to those concerns. And the commission apparently isn’t even following its mandate, which was to come up with ‘non-tax’ alternatives to the long-term financial stability of the highway trust fund. Raising the gas tax puts the brunt of the long-term trust fund expenses on automobile drivers, when diesel trucks and other heavy vehicles also use the highways. Also, the new law on the CAFE standard might increase the price of all automobiles to the consumer, so consumers could face a double hit. They might drive less, but they wouldn’t be adding to the highway trust fund, which was the commission’s mission. I hope there are more creative ideas in the commission’s report than a gas tax increase. The nation needs innovative ways to meet energy needs without sinking the economy." (Statement from the Senator’s Office on the National Surface Transportation Policy and Revenue Study Commission report, 01/11/08)

New Jersey Gov. Jon Corzine: The Governor this week outlined his new bond and highway toll plan to address state funding shortfalls. “Alternatives, he said, include a 20 percent income tax increase, 30 percent sales tax increase, a 50 cent per gallon gas tax increase or annual $2.5 billion budget cuts. “’I believe all of these options are bad for our economy, would drive our tax burden drastically higher or impossibly damage the ability of the government to fund schools, provide property tax relief or public safety and welfare,’” Corzine said. (“Corzine Aims to Prove Financial Expertise with Toll Plan.” Associated Press, 01/09/08)

Florida Congressman and House Transportation and Infrastructure Committee Ranking Member John Mica: "While I respect their hard work and efforts, the Commission's recommendation of a dramatic increase in the gas tax does not stand a snowball's chance in hell of passing Congress.” (Panel Pumps Gas Tax Boost But Sees Political Obstacles, CongressDaily, 01/15/08)

Idaho Gov. C.L. Butch Otter: “…I am not going to propose increasing the state fuel tax. High gas prices already are squeezing the working men and women of Idaho, and too little of that money makes it back to the highways under our current system.” (Gov. Otter’s State of the State Address, 01/7/08)

Iowa Governor and Lawmakers Say No to Gas Tax Increase: “A plan to raise Iowa's gasoline tax by 4 cents per gallon is dead. State lawmakers on an interim study committee Wednesday declined to endorse any type of revenue increase to pay for highway projects….State Sen. Tom Rielly, an Oskaloosa Democrat who is the panel's co-chairman, said Wednesday the tax increase was removed from further debate because of opposition from Democratic Gov. Chet Culver….Culver sent the committee a letter that said he recognized the need to improve Iowa's roads, but he wants lawmakers to consider other options. ‘With gasoline reaching $3 per gallon, I believe now is not the time to raise the gas tax,’” Culver wrote. (“Lawmakers Say No to Raising Gas Tax,” Des Moines Register, 12/20/07)

Texas Gov. Rick Perry: “Gov. Rick Perry today criticized the National Surface Transportation Policy and Revenue Commission’s recommendations to triple the federal gas tax from its current 18.4 cents to nearly 60 cents per gallon (with a series of five tax increases over five years) and curtail states’ ability to leverage the capital and innovation of the private sector. Adding an even harsher blow to taxpayers, the commission encouraged states to follow suit and simultaneously raise their own gas taxes at an even higher rate than the proposed federal increase. Congress must reject these recommendations….‘Tripling the federal gas tax while also insisting on a massive state gas tax increase is the wrong way to solve our transportation infrastructure challenges,’ said Gov. Perry. ‘Rather than take more of our money and deliver less of what we need, I suggest the federal government step aside, let states retain their dollars, and give them the freedom to solve problems at the state and local level. Texas can find solutions to the problems our state faces much better than Washington, D.C.’” (Statement from the Governor’s Office, 01/15/08)
Montana Senator and Senate Finance Committee Chairman Max Baucus: “…Baucus, who has long opposed raising the tax, said in an interview with The Associated Press Wednesday that the country's reliance on gas taxes is hurting the highway trust fund as more people use hybrid cars and the cost of materials for highway construction increases. He said there are better ways to replenish the fund, but he would not detail what those were. ‘I don't think an increase in the gasoline tax is needed,’ he said. ‘I don't favor it.’ Baucus is also chairman of the Senate Environment and Public Works Committee's transportation subcommittee, which writes the multibillion-dollar highway bill every several years. ‘Where I am going is there are other ways to replenish the trust fund that are frankly, oh, more palatable ... that the American people would not react adversely to,’ he said.” (“Baucus opposes hike in federal gas tax.” The Associated Press, 08/16/07)

South Carolina Senator and Senate Commerce, Science and Transportation Committee Member Jim DeMint: “This is a typical Washington-insider solution to real problems, hike taxes and give failing bureaucracies more money to waste,” said Senator DeMint. “Gas prices are already at record levels and American families shouldn’t be overtaxed while they are struggling to make ends meet. Until Washington stops funding bridges to nowhere and bike paths while infrastructure crumbles, they can’t be trusted to fix the real problems we face.”(Senator DeMint statement on commission report. 01/15/08)

Arizona Congressman Jeff Flake: “Transportation funding decisions are best made closer to home.  Sending more money to Washington only guarantees that Members of Congress will be able to issue more press releases and cut more ribbons for bike paths and transportation museums….Congress’ mismanagement of transportation priorities, rather than a lack of resources, is the real problem.” (Congressman Flake statement on commission report, 01/15/08)


Elected Officials Across the Country Think There Is
A Better Way Forward

California Gov. Arnold Schwarzenegger: “…Over the next 20 years, we have $500 billion worth of infrastructure needs to be met….So how do we meet all these needs? There isn't enough money in the public sector to do all of it. We need to expand partnerships where government and the private sector work together to meet the needs of the people. These partnerships can often deliver infrastructure faster, better and cheaper. For instance, in British Columbia, public-private partnerships are common for building highways, bridges, rapid transit, water treatment. Everyone is happy. The political leaders are happy, business is happy, the public is happy, the economy is happy, the future is happy. In the weeks ahead, I will send you legislation to make these partnerships more available to our state and to our local governments. (Gov. Schwarzenegger’s State of the State Address, 01/8/08)

San Francisco Mayor Gavin Newsom: “…One of the more controversial initiatives the mayor said he will push for during his second term is a congestion-pricing program that discourages drivers from driving their polluting cars by charging them a fee to use certain roads in the city. Newsom offered few details about the proposal, but said ‘a sensible congestion-pricing plan is the single greatest step we can take to protect our environment and improve our quality of life.’” (“Mayor Gavin Newsom begins his second term promising to make the city greener and a leader in health care reform,” The San Francisco Chronicle, 01/09/08)

Georgia Governor Sonny Perdue: “…On Jan. 9, Perdue said his attention will instead be on making the Georgia Department of Transportation more efficient. ‘I want to see us get our act together before we start talking about burdening people with more taxes,’ Perdue said. [Jeff] Mullis [chairman of the Senate transportation committee] agreed more bang for the buck is needed. He wants to require GDOT to bid up to 15 percent of its projects as more efficient design-build contracts. In addition, he plans to ask Congress to let Georgia keep all the gas tax revenue it collects, rather than sending any to the federal highway fund, which is expected to run a deficit in fiscal 2009.” (“Huge Issues Await But Will Lawmakers Act.” Atlanta Business Chronicle, 01/14/07)

Washington Gov. Chris Gregoire: “I believe variable tolling combined with improved transit and other options such as telecommuting, will cause people to change their driving habits cutting commute times and pollution and increased congestion relief…. We must find ways to encourage people to think about the trips they take -- and to not drive alone. Tolling will better reflect the true costs of driving.’” (Statement from the Governor’s Office, 01/10/08)

Texas Gov. Rick Perry: “…Texas’ transportation needs are a challenge that grows by a thousand people every day. In the next 25 years, road usage in the state is expected to increase by more than 200 percent and our entire states population is expected to double in the next 40 years. ‘States must have the flexibility to move forward with their own solutions that are tailored to needs at the local level. Texas will not abandon the forward thinking initiatives we championed to meet our state’s current and future transportation needs,’ concluded Perry. ‘It would be much more useful if the federal government would devote its energies to encouraging innovation, instead of stifling it.’” (Statement from the Governor’s Office, 01/15/08)


Alabama Gov. Bob Riley: “Gov. Bob Riley is looking for ways to increase highway construction without raising the state gas tax, and toll roads will likely play a major role in his plan. At Riley's direction, the state Department of Transportation is studying the feasibility of getting private companies to build - or to partner with the state on - some new roads that would use tolls to cover construction costs. ‘We've got four or five projects in the state right now that if we wait on the federal government to fund them, it will be 15 or 20 years from now,’ Riley said. ‘If we can come up with a toll solution to some of these, we will probably pursue that.’” (Riley Eyes Toll Roads for State.” The Associated Press, 09/24/07)