Wednesday, May 1, 2019

 Should the various levels of American government increase their pollution taxes on gasoline?

There are arguments for both sides of raising gas taxes. One argument in favor of raising taxes on gasoline is how "Higher taxes on motor fuels could raise significant revenue to pay for infrastructure"(Dan Sichel, PBS, 2019). With an increase in the tax of gas, the Government would be able to provide better roads to drivers. This is a good way to get the money because people who don't drive will not have to pay for this, as it is calculated into the cost of gas. The Highway Trust Fund is currently in a deficit, and they are paying more annually, then they receive. Increasing the tax of gas would help eliminate the deficit.

One argument that is against raising the taxes on gas is how it is not proportional for all drivers. "By increasing the gas tax, not only are you lessening the amount of money in their [the middle class] pockets, but the amount of money being pumped into the economy is being lessened too. It’s estimated that a 1 percent increase in gas prices takes $1 billion out of consumers’ pockets. That’s $1 billion dollars that could be spent on eating out, clothes, and leisure activities"(Emma Boone, Americans for Tax Reform, 2015). If gas taxes are raised the middle class will be hurt the most, because the upper class has enough money to spend extra, and much of the lower class most likely cannot afford vehicles. The middle class (which makes up roughly 1/3 of America), can afford vehicles, but many could not afford the raised prices of taxes. This would cause the government to lose much of the money that it could potentially gain from raising taxes on gas.

I think that the government should not raise the taxes on gasoline. I think that although it could help the government earn more money for struggling programs, much of the money would not be received because much of the middle class would have to stop, or significantly reduce the amount, that they drive. Not raising the tax on gas allows more people to be able to pay for it. It is very simple because it is already in place, but people would receive more benefits if there was an increased tax, because more roads, bridges and other transportation necessities could be improved.

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