Time to raise Federal Gas Tax?

[javacontour]

Go look at the link I posted about IL and you wouldn't say income taxes are disproportionate. Given that tax rates are likely close to the same, folks in Cook county are pay the same federal tax rates as those in downstate counties, yet get 26% of their per capita cash income back from the federal government compared to downstate folks who get 21% Since I'm dividing federal spending by cash income, and the federal tax rates are the same, folks in Cook county are getting back more for their federal tax buck paid than those downstate. Therefore, wealth is being transferred from downstate, rural citizens to the urban area.

So even though they are paying higher taxes, then are getting that back AND more.

The only way that happens is if there is a net flow of taxes out of the rural areas and into the urban area.

Agreed, taxes don't take into consideration cost of living. But then is it really the government's job to subsidize living in an urban area just because it costs more to live there than somewhere else?

So the "it costs more to live there argument" isn't a good one to justify taking taxes from rural areas and spending them in urban areas.

 

[javacontour]

Originally Posted By: Gary Allan
Quote:
congestion costs eleven cents in the year that spending occurred.



Errrr...congestion? Caused by whom? All the mass transit using urban dwellers? ...or the suburban people who work there??

Please ..step outside the bubble of escapist view.


Well, it's not caused by the farmers downstate So why are we sending them the bill?

 

[Tempest]

http://www.thenewspaper.com/news/14/1494.asp
Quote:
Billions in Highway Taxes Diverted to General Spending
Only one-third of fees collected by state and local government from motorists goes directly to road construction and maintenance.

Billions of dollars collected from motorists from gasoline taxes, tolls, and registration fees are being diverted by state and local governments into uses that have nothing to do with roads and highways.

According to the latest figures from the Federal Highway Administration, motorists gave state and local government $40.3 billion in 2005 for the ability to drive and own a vehicle. Gasoline taxes accounted for $20.5 billion in revenue while registration fees and miscellaneous taxes generated $13.5 billion. State and local toll roads also collected $6.4 billion from motorists.

After accounting for administration and overhead, $28.5 billion remained for all fifty states to spend in 2005. Of this amount, only $13 billion was spent on state and local road construction and maintenance.

A total of $8.9 billion of motorists' money was diverted into unrelated uses. A total of $1.4 billion went to mass transit and $7.5 billion was used for social spending. The remaining amount went to related uses such as paying down transportation debt and funding highway law enforcement.

Only 32% of the taxes went to road building!

30% when to administration and overhead!

NO more taxes are needed.

 

[Gary Allan]

Quote:
The only way that happens is if there is a net flow of taxes out of the rural areas and into the urban area.




Or a net value derived from the metro area that never returns to it. That's easy enough to see. The view is merely inverted.

Correction: Non-urban doesn't dictate rural. Suburban environments are only vital due to the metro areas that they surround. They take all of the benefits from them, and escape the costs.

 

[oilyriser]

Originally Posted By: Gary Allan

Correction: Non-urban doesn't dictate rural. Suburban environments are only vital due to the metro areas that they surround. They take all of the benefits from them, and escape the costs.


Can you put some numbers behind those words?

What exactly are the suburban areas taking from the urban areas?