Gas Tax: Have Americans been Spoiled?
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Many of us remember when gas was 99 cents per gallon. Now, we are bemoaning the fact that most of the time, we have a hard time finding it for less than $4.00 per gallon. Do you realize, though, that the US has only 18 cents per gallon Federal tax on every gallon of gas… while many other countries charge several dollars per gallon for their gas tax. Robert Lutz is the Vice Chairman of Global Product Development with General Motors, and talks with us in this video about the gas prices today.
We were living in this fool’s paradise of cheap fool several years ago, according to Lutz. He feels that has harmed our country in many ways. It has permitted our infrastructure to go downhill, because we cannot keep it up to date. Also, our roads are in about the worst condition of anywhere in the World. This has also resulted in urban sprawl, as people realized they could live in a smaller, quieter community and afford the gas prices to drive to work in the cities. However, in Europe, the cost of gasoline is so high due to the Federal fuel taxes, people live much closer to the city in places like condos. If we keep spreading out here in the US, we’ll end up being one solid development from ‘sea to shining sea’.
Starting in about the 1970s, Mr. Lutz started talking to people in Washington about considering a Federal fuel tax increase for just these reasons. So far, our government has refused to do this. I know… you’re screaming now, and hurling obscenities. You cannot imagine having higher Federal fuel taxes. Let me remind you, though, that in Europe they pay a few dollars per gallon, just in “Federal” fuel taxes. They have good roads. They have good infrastructures.
What’s the answer? Do we raise the federal tax on fuel to improve things like our roads? We are spoiled. We gripe over $4.00 per gallon for gasoline… try having to pay twice that over in Europe…. and in some cases, three times.
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