Are gas prices going up?
- Thread starter b3r3m
- Start date
They will, once they increase the federal tax 10 cents a gallon. Sounds like Iowa is jumping on the bandwagon too, they haven't said how much it is going to go up however. My bro-in-law is in the oil industry, and he said reguardless of this, the prices won't top 2 dollars a gallon until summer.
A 50% increase in gas tax is being proposed. Basically, the decrease in demand is bringing in less revenue, and it isn't covering the costs of road maintenance.
Motorists' habits spur call for tax increases - Yahoo! News
Motorists' habits spur call for tax increases - Yahoo! News
Shouldn't less demand mean less driving (in general), and thus mean less wear and tear on roadways, decreasing the funds needed for construction and repairs?
Logic would tell us this, but with gubment, logic need not apply.
I didn't read the article, but if I had to guess I don't think it's a linear relationship
I'm guessing weather is a big factor in road maintenance as well... not to mention there is a lot of maintenance already being put off due to lack of funds, so maybe the lower revenue is making that even more critical
Just a guess though
I think too many of the states and the fed got used to the high tax amount if they were % figured vs. a flat figure, and now that the revenue is down they want to increase it again.
