There’s a lot of talk in Washington about a compromise infrastructure bill that would include a hike in the federal tax on gasoline and diesel fuel. Bad idea! This segment of What’s Ahead lays out why.
Proponents say this tax hasn’t risen in years, and is thereby lagging inflation. And they also point to the concept of user fees. Tolls are meant to finance and maintain particular roads and bridges. Fuel taxes are another tool to do the same for the Interstate and other toll-free facilities.
Trouble is, the Highway Trust Fund for the Interstate Highway System was created for precisely that purpose—and has been raided by politicians for other uses. The same has happened to other dedicated funds.
But more to the point, hiking fuel taxes now would harm a badly needed recovery.