What is the REAL COST of an Increased Gas Tax?
I began to take notice when I heard Councilor Ray Burton's call for increasing the gasoline tax to make-up for the mis-spent revenues no longer available to pay for the 10 year Highway Plan. This was put forward at a time when the gasoline prices are breaking everyone's personal budgets.
Councilor Burton's call brought forth House Bill 1445-FN-A-LOCAL being introduced by Rep King from Coos 1, Rep Weed from Cheshire 3, and Rep Osborne from Merrimack 12. The plan was to increase the gasoline tax by $0.06, bringing the tax from $0.18 to $0.24. The plan was to increase the State Restricted Highway Fund by more than $44 Million and increase the local revenues by more than $6 Million.
I have opposed this measure because it is increasing a tax at a time when people are going broke paying for their energy needs. Fortunately one of the committees charged with vetting this bill decided not to pass it as "inexpedient to legislate", leaving the bill alive on the docket but going nowhere.
Today I came across a video from The Heritage Foundation talking about the negative impacts of increasing the Gas Tax. You should watch this video because it not only explains the evident costs associated with this type of move but it lets you know about the "unintended consequences" this type of tax move would cause.
I would agree that more money is needed in the budget for the Department of Transportation to fund the Highway Plan, but no new or increased taxes are needed. It is time for some fiscal restraint in Concord. If money for the fund wasn't paid to other "pet" projects and the budget wasn't overly inflated to include who knows what we might have a balanced budget that would include the projects and services that we do need.
If we don't watch out and become involved we will see the Legislature go from increasing taxes we already have to imposing new taxes on businesses and ultimately a broad based tax. The important thing to remember is that whatever new or increased taxes they come up with in Concord very little of the increased revenues will make it to the local level, which is where our property taxes go to. I guess the thought of some in Concord is to tax the rich more, even if the poor lose out along the way.


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