DALLAS — Lawmakers who vote to raise state gasoline taxes do not face an irate electorate during the next election, contradicting the conventional wisdom that tax increases are political dead-ends, according to an analysis of the 2014 legislative contests in seven states.
The study, by American Road and Transportation Builders Association, found that 95% of Republican legislators and 88% of Democrats won re-election bids last year after voting to raise gasoline taxes in 2013 and 2014.
The re-election percentages for state legislators who voted against higher gasoline taxes are almost identical to those who supported a tax increase, according to the study.
The electoral analysis by ARTBA's Transportation Investment Advocacy Center said seven state legislatures passed a gas tax increase or its equivalent in higher sales and excise taxes in 2013 and 2014. Taxes were increased by legislative action in Massachusetts, Maryland, New Hampshire, Pennsylvania, Virginia, Vermont, and Wyoming.
The analysis holds two lessons for Congress, which is facing a decision on how to fund federal transportation spending over the next four to six years, said ARTBA president Pete Ruane.
"First, a bipartisan majority can be found to increase transportation investment if the leadership of both parties actually lead - rather than play politics - and give their colleagues a chance to vote," Ruane said. "Second, if legislators are honest with their constituents and clearly explain why a gas tax increase is necessary and important and what benefits their constituents will derive from it, they have little reason to fear the ballot box over a gas tax vote."
ARTBA and the American Public Transportation Association will air a series of ads on a Washington, D.C., news radio station this week asking Congress to raise the federal gasoline tax of 18.4 cents per gallon. The groups ran similar ads in home states and districts of nine congressional leaders last week.
ARTBA has proposed an increase in the federal gasoline tax to 33.4 cents to provide $401 billion for six years of federal transportation funding while giving taxpayers a $90 per year rebate to make up for the higher taxes. The $103 billion of tax rebates in the ARTBA plan would come from a repatriation tax on corporate foreign earnings.
The American Trucking Associations on Tuesday asked Congress to pass a short extension for the Highway Trust Fund and then raise federal gasoline and diesel taxes to pay for a six-year highway bill. The current extension will expire May 31.
Truckers pay $16.5 billion a year in fuel taxes and other user fees dedicated to the HTF, said ATA president Bill Graves.
"We're willing to pay more at the pump to help Congress get a long-term solution for our infrastructure across the finish line in 2015," he said." Our elected leaders should stop considering a lengthy delay that will certainly prevent passage of a long-term bill this year."
Meanwhile, Sen. Deb Fischer, R-Neb., introduced a bill on Tuesday to establish a national infrastructure bank capitalized with up to $30 billion from tax revenues on corporate overseas earnings that are voluntarily repatriated.
Fischer said the proposed American Infrastructure Bank created by her Build USA Act would provide states with new financing and funding tools for transportation projects.
States could enter into three-year agreements with the infrastructure bank to assume authority and oversight over some federal requirements, such as environmental approval and construction design, on transportation project. The state would receive 90% of its remitted federal funding for core infrastructure projects with 10% available as low-interest project loans.
The national infrastructure bank would make infrastructure loans to states from the repatriated revenue as well as the optional remitted federal transportation dollars.
States could remit federal transportation dollars, apply for a transportation project loan through the infrastructure bank, or both, she said.
"It is time to think outside the box and offer bold solutions," Fischer said. "Nebraska has gained successful results with this model and it's time to bring best practices from our states to the national discussion."
