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Monday, February 07, 2005
Raising the Gas Tax
The New Jersey state legislature and acting governor are considering doubling the state's 14.5-cent gas tax. Meanwhile, an influential state senator in Pennsylvania wants to make a "temporary" 4-cent increase to that state's gas tax permanent, and then tack on another cent-and-a-half, to make the total gas tax 31.5 cents a gallon. Both of these are great ideas, and both indicate how difficult it is to pay for all our roads — especially when we've been maintaining them with borrowed money for a decade. The New Jersey gas tax would increase prices there to make them in line with prices elsewhere in the metropolitan area. Here are two graphs that show New Jersey prices in blue, far below prices in New York and Connecticut. The first graph shows gas sprices for the past two years, the second, for the most recent month.
 
This shows the need for regional coordination of transporation policy. If people can travel across state lines to get a deep discount for gas, why shouldn't they? This serves to artifically undercut New York retailers. A regional planning authority could set an even, rational tax structure across the board. In any case, the writing is on the wall. It looks like driving will get more expensive for large segments of the regional motoring public.
- New Jersey Faces Pressure to Increase Gas Tax [NYT]
- Pennsylvania May Pump Up Gas Prices [Pocono Record via UTU]
- Posted at 9:07 PM |
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