By Dick Miller
WE.CONNECT.DOTS: The gap between rich and poor grows larger. More transportation levies from Harrisburg and Washington will expand the difference.
If you drive in Pennsylvania, look to pay 40 to 50 cents more per gallon, likely starting in 2014, certainly by the next year.
The movement to shaft the poor advances in Harrisburg when House Republicans trot out their version of the transportation-funding bill. Following passage this week, it will go to a conference committee to work out the differences between the “R” version in the House with the “R” version in the Senate.
Gov. Corbett, another Republican, only took three years to get a transportation bill this far. More concerned about his campaign promise to “never raise taxes,” Corbett’s handpicked study committee took a year to “discover the obvious,” then another year passed for Corbett to study the “obvious” findings.
This bill will add 24 to 30 cents of state taxes on the price of gasoline, depending on which of the three versions (House-R, Senate-R or Governor-R) survive.
We did not leave Democrats out. They remained in the locker room by their choosing. Democrat philosophy in Harrisburg follows these lines:
“Republicans own the governorship and both legislative chambers. This control enables them to pass measures that increase taxes without Democrat help. Tax increases increase chances of losing re-election. We (Democrats) will just be out to lunch for a couple of years.”
PA motorists should prepare to shell out over $4 per gallon. Unfortunately, paying high taxes on vehicle fuel to maintain infrastructure was good public policy three or four decades ago. Several European countries, notably Germany, Italy and Holland to a great extent and England and France to a lesser, taxed vehicle fuel heavily for that long or more.
Benefits resulted in three areas. First, European governments always had ample funds to maintain roads, bridge, airports, railroads, etc. in good shape. Second, paying high prices for gas created a demand for fuel-efficient cars and other forms of transportation.
For example, in Paris the government funded bicycles and left them in publicly accessible racks. Going from Point A to Point B in Paris? Hop on a public bike, pedal and then leave it in another public rack near your destination. No charge.
Third, using less gasoline diminished the negative impact on balance of trades.
Europeans drove compacts and subcompacts while Americans cruised in pickup trucks and SUVs.
The state funding bill is not a full solution, as it allows almost no more funds for county, city and borough roads and bridges.
The state bill will not end your requirement to pay more.
The Federal Highway Trust Fund is not able to meet its commitments for matching construction monies beginning in 2015. Congress will have to act and – unless members decide to tap general funds – the only method the Trust Fund can raise revenues is through gasoline taxes.
Existing gasoline taxes cannot support transportation needs because of the fuel efficiency of newer cars. Our Federal government demands it.
When poor can afford the bloated price of an electric vehicle, then we will look for another source of income.
BOTTOM LINE – How does higher gasoline taxes bang the poor and harm the rich less? What is an alternative solution fairer to all?
The single mother making $11-12 per hour will struggle to pay higher gasoline taxes. The hike decreases her disposable income. Her disposable income shrinks more as higher transportation costs trigger price hikes for kids’ clothing, food, etc.
Compare this with the guy who drives an Escalade. Higher fuel taxes make a smaller impact. If he is on an expense account, he will not notice the difference.
The hit on the poor becomes less if owners pay vehicle registrations based on value, already in effect in more than half the other states. Obviously, Mom will pay less for her 7-year-old junker than our guy will for his $70,000 new luxury SUV.
When this suggestion was made to a minority member of the state House transportation committee, his response was “I’ll see if someone else brings it up.”
