FUEL EXCISE TAX – WE PAY A LOT OF TAXES; SOME SAY TOO MANY.

Some people argue that we pay too much taxes. But since 1993, one federal tax that all of us pay hasn’t changed: the gas tax. Yes, it is correct. For the last 21 years, the gasoline tax has remained constant at only 18.4 cents per gallon. What other item that has remained the same price since 1993 come to mind? nothing. For Americans who drive, particularly those who ride motorcycles, this poses a significant issue. See, the 18.4 cents per gallon that you give to Washington each time you fill up are invested in a fund that has a six-year growth cap. After that, Congress drafts legislation to use the funds, which is referred to as the highway bill. Roughly equal to what each state contributes, the money is used for new construction, different initiatives, and maintenance of roads and bridges. This is significant information since one in nine bridges in the United States is now structurally poor. America’s bridges are 42 years old on average. According to federal highway administration (fhwa) estimates, modernizing the nation’s bridges would cost $20.5 billion a year. With just $12.8 billion available for expenditure at this time, the waiting list for repairs will remain open until 2028. The high state taxes on petrol—the average state tax on gas is 49.5 cents per gallon—are a contributing factor in the issue. It is 2.5 times what the federal government takes. The impossible has been done by Americans: they are driving less, which is another aspect of the issue. US petroleum sales reached a peak in 2007 and have since declined, bankrupting the roadway. Don’t interpret this incorrectly. We certainly need to repair this, but I’m not suggesting we should simply throw money at the issue as much of Washington does. We have electric and hybrid vehicles, more people are riding motorbikes, automobiles are getting better and better gas economy, and gas prices are rising. All of this results in Americans using progressively less gasoline, which in turn contributes progressively less to the transportation bill and, in the end, leaves us with deteriorating roads and bridges. The gasoline tax is imposed, among other things, on those who profit from its expenditure. The highway bill’s whole budget is allocated to roads and motorists. It is a real user charge; it does not support military expenditure or assist offset school meal programs. You don’t pay into it if your gasoline-powered car isn’t used on the roads. During his presidency, Ronald Reagan vehemently opposed increasing the gas tax. He cried, It’s not a tax, it’s an entrance fee, after hearing how it operated and why we had to increase the tax. which is accurate. We now need more funding from fewer sources. Three cars, please: a 2012 Honda hybrid, a 2014 Tesla Model S that runs entirely on electricity, and a 1986 Oldsmobile Cutlass Supreme. The user fee idea has left the building even if everyone is using the same road and some are not paying. We need to think outside the box. For many years, the Motorcycle Riders Foundation (MRF) has been addressing this problem. Although it’s difficult and convoluted, we motorcyclists must be prepared to contribute fairly to the road as do all other users. Numerous plans have come and gone, but in Oregon, something seems to be emerging as a viable option. The mileage tax is a little foot that might be worn. Since 1919, when it became the first state to impose a gas tax, Oregon has led the way in fuel taxes. In 1932, the federal tax was introduced. A mileage tax is being collected by the Oregon Department of Transportation under a new scheme. This tax is based on the distance you drive or ride, rather than the price per gallon of gasoline. This kind of behavior was unthinkable years ago. It was despised by everybody. The idea was rejected by the federal and state governments in charge of data collection because, first and foremost, they didn’t want to have to collect more numbers and secondly because the necessary technology was lacking. When we fast-forward to 2014, the technology is there everywhere. Vehicle mileage may be monitored and tracked using any equipment that is linked to a satellite or cell tower. To allay privacy concerns, the Oregon initiative is charging 5,000 volunteers at a rate of 1.5 cents per mile via a third party that would collect the taxes on behalf of the government. Though the outcome is still up in the air, putting off facing the future will only be temporary. – Remember to use a carbon fiber or custom painted helmet while riding.

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