Suggested tax leads to gas pains
A few months ago, the Idaho Transportation Department floated the idea of raising the tax on gasoline up to 24 cents a gallon. They had to do something, the department said, or a projected multi-million dollar deficit over the next three decades would cripple essential projects and programs.
On Monday, AAA released its telephone survey of 400 Idaho voters in 41 counties that asked what folks thought of increasing the gas tax. Seventy-four percent said they oppose raising the tax to cover the transportation department's budget gap.
We'd like to echo that sentiment, and perhaps turn up the volume just a tad.
Raise the state tax on gasoline? Over our dead gas tanks, they will.
First, we steadfastly maintain that government must learn to live within its means. That's not an indictment of ITD over any other state department, but a reminder that before hundreds of millions of dollars in additional revenue is accepted as the only alternative, every single cost-cutting measure has been scrutinized and applied where applicable.
Assuming that's the case, any significant hike in the gas tax should be rejected as a major blow to the state's economy. Just as the workforce is adjusting to gasoline prices that have doubled over the past few years, a gas tax increase would take essential dollars out of workers' and employers' pockets and put them in ITD's piggy bank. It is not an exaggeration to suggest that a gas-tax increase of any size would directly lead to the loss of valuable jobs.
One of the biggest problems of raising gas prices is that it would hurt the working poor the most. We know that's somewhat consistent with Idaho tax policy — last year, we raised the state sales tax so hungry families could subsidize homeowners' property taxes — but we object on principle. A hike in the cost of gasoline would push some folks over the fine line between working for low wages and saying the heck with it and going on welfare.
What makes more sense to us is a thorough examination of fees that help maintain and improve Idaho's roads. For instance, in many states, the value of vehicles is factored into registration fees. In Idaho, vehicle owners pay a low, flat fee, based on the age of the vehicle.
This is delightful news to newcomers to our great, low-tax state, especially for those used to paying several hundred dollars a year to register their vehicle. We think there's ample room for higher registration fees, particularly for newcomers, drivers of expensive vehicles, and especially, commercial vehicles that cause the most wear and tear on the state's highways. Again, increases should be considered only after every department's expenses are scrutinized and justified.