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Federal Gas Taxes Get Another Look
By Monisha Bansal
CNSNews.com Correspondent
July 28, 2005

(CNSNews.com) -- With gas prices averaging $2.29 around the country this week, one lawmaker in Washington wants to help states opt out of the 18.4-cent-a-gallon federal gas tax.

Earlier this year, Rep. Scott Garrett (R-N.J.) introduced the Surface Transportation and Taxation Equity (STATE) Act, which would allow any state that increases their state

gas tax to have their federal gas tax contributions offset by the same amount.

Garrett calls the current federal system, "bureaucratic, Byzantine and outdated." He added that a "local interest will propel us to improve our roads."

"There needs to be a new system in place that allows the states more discretion over their transportation programs, maximizes the resources available for our transportation system, and is more equitable for New Jersey and other donor states like it," said Garrett.

Garrett noted that the proposed legislation would "keep states free of unwanted federal mandates and budgetary pressures."

Since 1956, the federal government has had a large stake in the nation's roadways with the construction of the interstate highway system.

"The Federal Highway Trust Fund was established specifically as a means to finance highway construction. It is now a slush fund for Congress to fund programs aimed at appeasing special interests and financing non-highway projects," said Gabriel Roth, a transportation economist.

Roth added, "States fully responsible for their own roads would have stronger incentives to ensure that funds paid by road users were spent efficiently."

The bill is cosponsored by Reps. Jeff Flake (R-Ariz.) and Mark Foley (R-Fla.).