How Does A Gas Tax Reduce The Deficit?

The deficit commission has proposed a 15-cent gas tax, which would fund the Highway Trust Fund for needed infrastructure projects as opposed to deficit reduction. Brooking's Robert Puentes explains why it was included.

1 minute read

December 14, 2010, 7:00 AM PST

By Irvin Dawid


Transportation policy wonks commiserate that the federal gas tax was last raised in 1993 - creating a huge shortfall in maintenance and inability to launch new projects. The National Commission on Fiscal Responsibility and Reform (known simply as the deficit commission) addressed a consequence of this funding lapse, as Puentes explained:

"Simply put, it's because the gas tax doesn't generate enough revenue to cover the costs of the federal transportation program. So on three separate occasions since September 2008 a total of $34.5 billion in general funds have been used to backfill the transportation account to keep it from running a negative balance. And this does not even include the general fund money that regularly funds some transit and safety programs, nor the $35.9 billion in general funds for highway and transit projects as part of the American Recovery and Reinvestment Act."

As was to be expected, none of the deficit medicine was to be swallowed, as Fox News reported on Dec. 3: "The report from the 18-member deficit commission won the support of 11 members, short of the 14 necessary to be formally adopted. The vote does not preclude Congress from taking up any of the dozens of recommendations on the floor, but it virtually assures the proposals will not be considered as a single package."

Thanks to The Transit Coalition

Thursday, December 2, 2010 in The New Republic

courses user

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges. Corey D, Transportation Planner

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges.

Corey D, Transportation Planner

Ready to give your planning career a boost?

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

Seattle Legalizes Co-Living

A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.

December 1, 2024 - Smart Cities Dive

Times Square in New York City empty during the Covid-19 pandemic.

NYC Officials Announce Broadway Pedestrianization Project

Two blocks of the marquee street will become mostly car-free public spaces.

December 1, 2024 - StreetsBlog NYC

Broken, uneven sidewalk being damaged by large tree roots in Los Angeles, California.

The City of Broken Sidewalks

Can Los Angeles fix 4,000 miles of broken sidewalks before the city hosts the 2028 Olympic Games?

December 5, 2024 - Donald Shoup

View from back of classroom of elementary school children at desks with raised hands engaged in class.

Why Some Affordable Housing Managers Are Running Education Programs

Many housing organizations are finding that educational programs are a logical — and valuable — addition to their offerings.

December 9 - Shelterforce Magazine

Anchorage Public Transportation

Anchorage Bus Depot to Reopen

After a four-year closure, a downtown Anchorage transit center will once again provide indoor waiting areas and services for bus travelers.

December 9 - Anchorage Daily News

Tall mature green trees lining a concrete walkway next to a street with multistory apartment buildings on other side and sun filtering through the leaves.

Mapping a Greener Future: Cal Poly Tackles Urban Canopy Challenges

Cal Poly, in partnership with Cal Fire, is leading the development of California’s new Strategic Plan for Urban Forestry, combining advanced data tools and interdisciplinary collaboration to expand tree canopy cover.

December 9 - Cal Poly News