116 3rd St SE
Cedar Rapids, Iowa 52401
Home / Opinion / Staff Columnists
Gas tax is a tough sell unless lawmakers sweeten the deal

Nov. 1, 2011 5:05 am
Did some road trip gas-pumping over the weekend. But, I have to admit, I didn't really feel under-taxed.
I know we need a higher gasoline tax to pay for hundreds of millions of dollars in road repairs in this potholed state. I know our share of bridges in need of repair is third-worst in the nation. I know the 21-cent tax hasn't been raised since 1989, when I was in high school, but the cost of road-building has jumped considerably.
From a macro economic view, it makes some sense, both to create public infrastructure jobs and to provide the quality transportation system that private industries need. A task force picked by Gov. Terry Branstad wants an 8- to 10-cent gas tax increase, a 1 percent increase in new vehicle registration fees and a new fee on hybrid or alternative-fuel vehicles. The changes would cover the $215 million transportation officials say is needed yearly to pay for critical repairs.
Normally, I'm on board. But with so many people struggling to get by in this dumpy economy, it's tough to get excited about raising the gas tax. Branstad appointed the task force, and even he's not making a commitment. Both major candidates in Senate District 18's special election race, Democrat Liz Mathis and Republican Cindy Golding, say they oppose an increase now. Hard to disagree.
But the Legislature could change my mind.
First, any gas tax boost must be coupled with an increase in the state's Earned Income Tax Credit for low-income workers. Branstad has vetoed two tries to put a little more money in workers' pockets by raising the credit. If he wants a higher gas tax, he has to toss a tax bone to folks who will be hit hard by the increase.
Second, lawmakers must change the formula for handing out road dollars, including gas taxes, to increase the share cities get for municipal roads. Under the current formula, state roads get 47.5 percent, counties 24.5 percent, farm-to-market roads 8 percent and cities 20 percent. The task force wants new bucks to be spent under a different formula that gives the state 60, the counties 20 and the cities 20. That's not good enough.
It's high time that more road dollars be spent where most Iowans live and where much of the economic growth that drives our infrastructure needs is actually taking place. Cities have been getting shafted by the formula long enough.
Third, there must be an automatic shut off that temporarily removes the increase if gas prices top a certain level, for example, $4 per-gallon, maybe $4.50. If fuel stays above that price level for six months, half of the increase is reinstated. After a year, it all goes back on. A temporary break shouldn't become permanent.
Add clean bathrooms and fresh fluid in all squeegee stations, and you've got a deal.
Opinion content represents the viewpoint of the author or The Gazette editorial board. You can join the conversation by submitting a letter to the editor or guest column or by suggesting a topic for an editorial to editorial@thegazette.com