A Federal Gas Tax Will Only Fuel Bureaucracy
So what is the point of a Federal gas tax when the money raised is redistributed to the states? After all, states can and do levy their own gas taxes.
Well, in addition to fueling the Federal bureaucracy, it enables the Federal government to leverage power over the states. What happens when the Federal government doesn't like what a state is doing or wants them to do something in particular? They threaten to withhold money. Perhaps one of the more famous examples (but hardly the most insidious) is the Federally mandated 55 MPH speed limit that used to exist on interstates. The Federal government didn't have the authority to force states to implement this speed limit but they can withhold funds if they don't.
So basically the Federal government implements these taxes for extortion purposes.
The Trump administration will release its long-awaited infrastructure plan in coming weeks. The plan is expected to include $200 billion over 10 years of federal funding. Where will the money come from? The president has pondered raising the federal gas tax.
Source: A Federal Gas Tax Will Only Fuel Bureaucracy - Foundation for Economic Education
Great blog post! What are your thoughts on the government shut down?
Everybody seems to have survived. I always laugh when they say they are shutting down all "non-essential" services. If it's not essential, then why are taxpayers paying for it? Government should only be doing things essential to government. Some believe that's nothing at all but in any case it's certainly less than it is now.