US News
US must raise petrol tax, panel tells Congress
Feb 27, 2009, 1:39 GMT
Washington - The United States must raise petrol taxes in the short run and consider shifting towards charging drivers per kilometre as cars become greener in future, an independent panel commissioned by the US Congress said Thursday.
The 15-member Financing Commission said the current petrol tax was 'unsustainable' as carmakers are producing more fuel-efficient cars, and recommended a system be put in place by 2020 that charges people based on the number of kilometres they drive.
Until that transition is made, the commission suggested a 10-cent increase in the federal petrol tax from its current level of 18.4 cents per gallon (4.9 cents per litre) to help repair the country's crumbling transportation infrastructure.
The report will further fuel a long-running debate among US politicians over how to raise more money for highways and spur the transition to greener cars, without harming the economy.
The federal petrol tax was last raised in 1993 and has actually lost a third of its purchasing power since. US states levy a separate tax on petrol - typically almost twice as much as the federal government.
The United States collects a fraction of the rate of many European governments. But a growing number of groups in the US, including some carmakers, are suggesting the time may have come for an increase.
Both General Motors Corp chief executive Rick Wagoner and Ford Motor Co CEO Alan Mulally last month suggested higher petrol taxes could help them make the transition to greener cars, which is considered crucial if the US car industry has any hopes of survival in the long run.
The panel warned there was a 'widening gap' between government spending and the country's infrastructure needs.
Many politicians argue an increase in the petrol tax will further burden US families and is the last thing to be considered in the midst of a severe recession.
COMMENT
blog comments powered by DisqusLatest Headlines in US
- 1. Mitt Romney Addresses Tea Party Summit Pictures
- 2. Seven injured as US Navy plane crashes into apartments
- 3. At least three injured in US Navy plane crash
- 4. Khalid Sheikh Mohammed, others to face death penalty trial
- 5. Khalid Sheikh Mohammed, four others to face death penalty trial
Older Talkback
page: 1
They will monitor you mileage via your annual registration tags. You watch and see. The socialists think they have carte blanche now to control our lives and you know what-the people voted it upon themselves.
'annual registration tags.'
And these monitor Your milage? You must have a different type of vehicle than me.
I think the people are more fed up with one percent of the population owning 25 êrcent of all wealth in this nation .They are also fed up with 10.000 familie losing their homes every week.They are fed up with people living in tents on wastelands,unable to provide shelter for their children And most of all they are ed up with brainwashed GOP posters offering not the slightest form of solidarity with the victims of this gigantic mess your dear presidents Reagan and Bush bestowed upon us .Let the richest pay for the crisis,nationalize the banks and petrol industry,install universal health care,decent education for all,over and out.
@dave you must be kidding or just a child trolling the boards. Damn sheep.
Obama and his socialist demons are going to destroy the US while we are most vulnerable and naive. We are about to enter into a depression and these fools chose the opportune time to deceive America and go on a shameless liberal spending spree.
Your wish for nationalized health care will ensure you receive less treatment as you grow older. Your wish to bail out imbeciles who signed loans they could never repay is destructive to our country's core beliefs of justice and hard work.
I sympathize for those who have been laid off. But these hard times are the result of years of artificially inflated property values, dishonest and criminal loan practices, and they were lauded and promoted by the Democrats like Barney Frank and the Democratic Black Caucus.
page: 1
the way around itFeb 27th, 2009 - 02:19:13
Disconnect the odometer/speedometer. Pay no tax. Drive as far as you want.
Report this comment