John Hood’s Daily Journal
Flashback: Raw Deal on Transportation
By John Hood
November 09, 2010
Following up on yesterday’s flashback of a November 2007 column on transportation policy, here’s the next in the series — taking a closer look at why North Carolina is not a net beneficiary of the federal transportation program.
RALEIGH – Fuel prices are among the most visible economic indicators to the public. Not surprisingly, people tend to get agitated when these prices are persistently high, and often translate their frustration into a broader pessimism about the economy and strong disapproval of incumbent politicians.
North Carolinians have a better reason than most to be angry. About 48 cents on every gallon of gas they buy goes to federal and state government in motor-fuels taxes. That’s higher than in most other states and all of our neighbors. And North Carolinians get one of the worst returns on their gas-tax money in the nation.
Now, I’m not saying that gasoline taxes are the most egregious taxes North Carolinians pay. As a matter of fact, they ought to remember that one reason the state gas tax is higher than average here is that our property taxes are lower than average. In most states, local governments play a larger role in road finance. And when taxes on highway users (fuel plus vehicle taxes) are truly dedicated to highway needs and spent wisely, the public can derive significant benefits in time, money, and safety.
Unfortunately, North Carolinians get an extremely raw deal for the gas taxes they pay. Let me count the ways. continue reading…
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