So how is congress going to pay for this massive stimulus.

Panel wants fuel taxes hiked to fund highways
By JOAN LOWY – 14 hours ago

WASHINGTON (AP) — A 50 percent increase in gasoline and diesel fuel taxes is being urged by a federal commission to finance highway construction and repair until the government devises another way for motorists to pay for using public roads.

The National Commission on Surface Transportation Infrastructure Financing, a 15-member panel created by Congress, is the second group in a year to call for higher fuel taxes.

With motorists driving less and buying less fuel, the current 18.4 cents a gallon gas tax and 24.4 cents a gallon diesel tax fail to raise enough to keep pace with the cost of road, bridge and transit programs.

In a report expected in late January, members of the infrastructure financing commission say they will urge Congress to raise the gas tax by 10 cents a gallon and the diesel fuel tax by 12 to 15 cents a gallon. At the same time, the commission will recommend tying the fuel tax rates to inflation.

The commission will also recommend that states raise their fuel taxes and make greater use of toll roads and fees for rush-hour driving.

A tax increase on this order would be politically treacherous for Democratic leaders in Congress — a gas tax hike was one of the reasons they lost control of the House and Senate in the 1994 elections. President-elect Barack Obama has expressed concern about raising gas taxes in the current economic climate. But commission members said the government must find the money somewhere.

"I'm not excited about a gas tax increase, but the reality is our current gas tax doesn't pay for upkeep of the system we have now," said Adrian Moore, vice president of the Reason Foundation, a libertarian think tank in Los Angeles, and a member of the highway revenue commission. "We can either let the roads go to hell or we can pay more."

The dilemma for Congress is that highway and transit programs are dependent for revenue on fuel taxes that are not sustainable. Many Americans are driving less and switching to more fuel-efficient cars and trucks, and a shift to new fuels and technologies like plug-in hybrid electric cars will further erode gasoline sales.

more here

Oregon looks at taxing mileage instead of gasoline
By RYAN KOST, Associated Press Writer Ryan Kost, Associated Press Writer
2 hrs 4 mins ago

PORTLAND, Ore. – Oregon is among a growing number of states exploring ways to tax drivers based on the number of miles they drive instead of how much gas they use, even going so far as to install GPS monitoring devices in 300 vehicles. The idea first emerged nearly 10 years ago as Oregon lawmakers worried that fuel-efficient cars such as gas-electric hybrids could pose a threat to road upkeep, which is paid for largely with gasoline taxes.

"I'm glad we're taking a look at it before the potholes get so big that we can't even get out of them," said Leroy Younglove, a Portland driver who participated in a recent pilot program.

The proposal is not without critics, including drivers who are concerned about privacy and others who fear the tax could eliminate the financial incentive for buying efficient vehicles.

But Oregon is ahead of the nation in exploring the concept, even though it will probably be years before any mileage tax is adopted.

Congress is talking about it, too. A congressional commission has envisioned a system similar to the prototype Oregon tested in 2006-2007.

The National Commission on Surface Transportation Infrastructure Financing is considering calling for higher gas taxes to keep highways, bridges and transit programs in good shape.

But over the long term, commission members say, the nation should consider taxing mileage rather than gasoline as drivers use more fuel-efficient and electric vehicles.

As cars burn less fuel, "the gas tax isn't going to fill the bill," said Rep. Peter DeFazio of Oregon, a member of the House Transportation and Infrastructure Committee.

The next Congress "could begin to set the stage, perhaps looking at some much more robust pilot programs, to begin the research, to work with manufacturers."

more here.

Aaron wrote:And if you beat the government by driving a fuel efficient vehicle meaning you purchase less gas thus paying less tax, they'll find a way to get around that as well.

States study taxing by the mile

PORTLAND, Ore. - Oregon is among a growing number of states exploring ways to tax drivers based on the number of miles they drive instead of how much gas they use, even going so far as to install GPS monitoring devices in 300 vehicles.

The idea first emerged nearly 10 years ago as Oregon lawmakers worried that fuel-efficient cars such as gas-electric hybrids could pose a threat to road upkeep, which is paid for largely with gasoline taxes.

http://www.wvgazette.com/News/200901020516

Aaron wrote:So then you are not a follower of Keynesian Economics but rather hold to the Smith line of thinking, correct Sod!!!

sodbuster wrote:Well I told you a dozen times I dont know anything about economics.

Then you expect me to pick one of your two choices.

So I dont know maybe I will pull something out of my hat ok.

Aaron wrote:
During the depression, excise taxes exceeded income taxes every year from 33 to 43 meaning it is the poor and working class that, proportionately, pays higher taxes just as it will be if tax increases like this are passed to raise revenue to pay for the stimulus spending.

I thought these programs were supposed to help the working man though. So how is it helping them if they give them a job on one hand and then force them to pay for that job with increased excise and other taxes on the other?