Raising the Gas Tax

The Iowa Legislature is considering applying an additional 4 cents on the state's gas tax. The reason for this is to raise additional funds for road projects. Predictably this has angered people and brought out the usual outraged responses such as this tax: 1) gouges consumers in the same manner as oil companies do; 2) hurts the lower socio-economic classes and 3) t won't stop global warming anyway.

Taxes generally outrage people almost as a matter of principle. The citizenery of this country (or any country really) expect, demand even, a lot of services from their government and somehow think this should be accomplished with as little monetrary contribution from them as possible. I am not going to argue the fact that governments can and do waste resources and that includes tax dollars, but many big businesses have the same problem when there are so many divisions and people that even the most vigilant system cannot always keep track of the left and the right hand's actions at the same time. Governments are imperfect because they are run by imperfect people who not coincidently are elected by imperfect people. But that is a debate for another day. Today we have people mad because they don't want to pay another 4 cents per gallon of gas despite the fact that gas here is cheaper than nearly anywhere else on the planet and per person, we use more than our worldly fair share. Americans are spoiled.

But let's look at the arguments I have seen against raising the tax. The first one was that the oil companies gouge us and then the state joins the party. My husband has spent many hours explaining the ins and outs of gasoline prices to me. He spent time in the oil business at the refinery end, so he has a fairly good grasp of supply/demand and market theory. Basically gas prices based on supply and demand. In the U.S., or any car dependent society, cars are not luxuries for the majority of people. Our penchant for sprawling communities and cities means that few of us live, work and shop within walking distance of our homes. Even with the limited mass transit systems that most people are accustomed to outside of the very large cites (which might have better and more adequate systems), we still need individual vehicles to get to the places we need to go. So, there is always demand which ebbs and flows based on seasons and holidays and on our ability to buy. When prices get too high, people cut back and prices come down again. And yes, I know this doesn't effect the tax which remains the same. The tax is a separate issue. Gas taxes are used to maitain and build new roads primarily. I wonder if anyone else sees the irony in Iowa raising more money for more roads? The state has an abundance of roads including a veritable surplus of 4 lane highways that are near empty and go nowhere the majority of the state's inhabitants need to go. Where I live in western Canada, people talk about the new bypass (the only one actually) that scoots by the Alberta capital of Edmonton, as though it were some fabulous breakthrough in travel. They number highways up here in the single digits and even though they live in the heart of oil country (much of which gets sent to the U.S.), they pay prices at the pump which make a 4 cent state tax look laughable.

But what about the poor? Well, what about them? They are hit hard by every use tax there is and no one seems to mind unless we are talking about gasoline. When that happens the poor become wonderful arguments in our war to not have to find ways to reduce our own comsumption. The poor are handy like that.

And finally, the idea that global warming can't be stopped by the reductions in comsumption. I agree with that but only because global warming can't be stopped now at all. We are no longer in the "cause" phase of global warming but the "effect" stage where the best we can hope for is to manage as many of the awful things that are here and are coming. I don't agree with idea that reduce our consumption is a waste of time or that the upper classes are such hedonists that rising prices don't cause them to change their driving habits at some point.

The Chevy Malibu I owned before leaving Iowa held about 14 gallons of gas, according to my husband, and an additional 4 cents per gallon is about 56 cents. I watched my students at Hoover High School spend ten times that much money in the snack machines alone on a daily basis. I spent more than that at the Starbuck's on my way to work and most people throw away far more money on their junk food habits or weekend Target fixes. What's interesting to me is that we readily dispose of our cash on the non-essentials without so much as first thought, but when it comes to gas for the car, we cry foul whenever the price goes up a few pennies or the government requires more payment for services.