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Our changing political environment

Friday, Jan 16, 2015 - Posted by Rich Miller

* Here’s something we’re not accustomed to seeing around these here parts: Two conservative Republican legislators saying they’re open to increasing the state’s motor fuel tax to fund a capital bill

“With gas prices as low as they are, I think that has to be a discussion point. It has to be,” said state Sen. Darin LaHood, R-Dunlap. “When you figure out how we’re going to fix our roads, we have to have resources to do that. It makes sense to look at that.”

State Rep. David Reis, R-Willow Hill, said he’s willing to consider a gas tax increase, but he also wants the state to stop diverting gas tax revenues to non-transportation programs, such as worker compensation payments and general state operation.

Amazing what the election of a GOP governor can do, ain’t it?

* Meanwhile

The trucking industry also isn’t opposed to an increase.

“We live and die by how good the roads are,” said Don Schaefer, executive vice president of the Mid-West Truckers Association. “We need to take a real hard look at how we maintain our infrastructure.

According to the article, Illinois’ 19-cent tax hasn’t been increased since way back in 1990.

       

64 Comments
  1. - Apocalypse Now - Friday, Jan 16, 15 @ 10:40 am:

    Doesn’t Illinois have one of the highest gas taxes, already?


  2. - Under Further Review - Friday, Jan 16, 15 @ 10:44 am:

    I thought Illinois double taxes gasoline sales. Overall sales tax and per gallon tax, plus the Federal, and local taxes, if any.

    Lower gas prices must be cutting into gas tax revenues for Illinois.


  3. - Gooner - Friday, Jan 16, 15 @ 10:45 am:

    I think this is a good move for them based on a practical reality — if gas prices go up in Illinois, Illinois voters are not going to blame IL Republicans. They are going to blame the President. They blame the President for gas prices as a matter of routine, whether or not he had any control.

    That’s just reality. As such, they can do it and not pay a political price.


  4. - Anonymous - Friday, Jan 16, 15 @ 10:45 am:

    And so soon after the piece about regressive taxes…


  5. - Nearly Normal - Friday, Jan 16, 15 @ 10:46 am:

    Check out the motor fuel taxes by state here–

    http://www.api.org/oil-and-natural-gas-overview/industry-economics/fuel-taxes


  6. - McDouble - Friday, Jan 16, 15 @ 10:48 am:

    but but but… I thought the ILGOP was full of good guys victimized by the democratic majority and that Obama was the reason gas prices were so high!

    /snark


  7. - Peoria Guy - Friday, Jan 16, 15 @ 10:49 am:

    By my count, 28 states have a higher gas tax than IL

    http://taxfoundation.org/article/state-gasoline-tax-rates-2009-2013


  8. - Ducky LaMoore - Friday, Jan 16, 15 @ 10:56 am:

    Ah, the ILGOP, reminding us why they were irrelevant and why they will be again shortly.


  9. - Casual Observer - Friday, Jan 16, 15 @ 10:56 am:

    I think reducing the gas tax would be a boost to the economy. The wife and I are taking a road trip this weekend because, why not, gas is cheap. The problem with supporting infrastructure is that Everybody has their hands in the road fund.


  10. - Illini97 - Friday, Jan 16, 15 @ 10:57 am:

    The Metro East is going to see a lot (more than already exists) of leakage across that Missouri border. They still have one of the lowest gas taxes in the country due to their different model for funding MODOT.


  11. - 75th district - Friday, Jan 16, 15 @ 11:02 am:

    well, well, well let’s just see how this ends or shall I say dies without coming out of committee.


  12. - Peoria Guy - Friday, Jan 16, 15 @ 11:02 am:

    Missouri is 2¢ lower. Indiana 2¢ higher. Indiana 1¢ lower. Wisc 11.5¢ higher.


  13. - Rich Miller - Friday, Jan 16, 15 @ 11:03 am:

    ===Lower gas prices must be cutting into gas tax revenues for Illinois. ===

    Motor Fuel Tax, which goes to the Road Fund, is based on gallonage.


  14. - 75th district - Friday, Jan 16, 15 @ 11:03 am:

    old Ducky has a point…


  15. - Peoria Guy - Friday, Jan 16, 15 @ 11:04 am:

    sorry, Iowa 2¢ higher, not Indiana


  16. - Langhorne - Friday, Jan 16, 15 @ 11:04 am:

    The water feels fine, said the frog.


  17. - Huh? - Friday, Jan 16, 15 @ 11:05 am:

    One of the things that I fear the most about the raise the gas tax because of low gas prices rhetoric is what happens when the prices foes through the roof. Will there be a big push to reduce taxes?


  18. - Peoria Guy - Friday, Jan 16, 15 @ 11:05 am:

    That is on “excise tax”. No idea what other taxes and fees are….


  19. - DuPage - Friday, Jan 16, 15 @ 11:06 am:

    Raise the gas tax and spend it only on the roads and bridges. Use it to repair and maintain existing roads first, then on new roads.

    A substantial part of the cost of roads is the oil products used to make the asphalt, and fuel costs for trucks and machinery. They should get as much done as possible while oil prices are low.


  20. - VanillaMan - Friday, Jan 16, 15 @ 11:07 am:

    Two conservative Republican legislators saying they’re open…

    Told ya so. If you want tax revenue increased, you elect the party considered anti-tax. Many voters believe that if the GOP favors a tax increase, we must need one, because the GOP is anti-tax.


  21. - Let'sMovetoTexas - Friday, Jan 16, 15 @ 11:08 am:

    Raised gas tax ought to based on gallonage when prices are low (like now), with a switch to a percentage if gas prices rise to say, $4 a gallon. Then state benefits more either way.


  22. - A guy - Friday, Jan 16, 15 @ 11:08 am:

    If you must pick one, this one would be an opportunity since it can take advantage of a much lower commodity price for a period of time. It’s an easily and quick collectible tax as well. It may be the most painless way to get through the ramp up and get the pension funds healthy. I would expect people to be less critical of this. It might just be the opportunity to get on top of revenue shortfalls without protracted argument. Apparently there are already GOP votes prepared to be on it. It’s more predictable than most revenue sources and less regressive than sin tax. This is worth a very hard look.


  23. - Bogey Golfer - Friday, Jan 16, 15 @ 11:12 am:

    ==Lower gas prices must be cutting into gas tax revenues for Illinois.==
    No, Rich is correct. BUT, more fuel efficient cars do. And the EPA is requiring new cars to achieve +50 mpg in 10 years. Need to scrap the per gallon tax and go a revenue source that is less consumption-sensitive.


  24. - Mouthy - Friday, Jan 16, 15 @ 11:13 am:

    Oil prices are way down but, as always, they will rise again. Sure they’re for raising the tax. It will add money to the general revenue fund where it will be used for other purposes, it taxes the poor and middle class percentage wise much higher than the rich who this would have a minimum effect on, and it help make the argument for a lower state income rate. What’s up next expanded video gambling, taxing pensions, or a sugar soda tax?


  25. - lil enchilada - Friday, Jan 16, 15 @ 11:14 am:

    My republican senator said no raised taxes!


  26. - Huh? - Friday, Jan 16, 15 @ 11:15 am:

    The State of Illinois mft is $0.19/gallon. The federal mft is $0.184/gallon. Then there is added sales tax that goes to the general revenue fund plus a couple of other minor epa fees.


  27. - Enviro - Friday, Jan 16, 15 @ 11:16 am:

    Gas taxes are regressive and unfairly impacts low and middle income working people. This sounds like business as usual.

    But if the trucking industry wants to pay more for their diesel fuel, this would put the tax burden on the industry that puts the most wear and tear on our roads. This would be a more fair solution to fix Illinois roads and highways.


  28. - Mister M - Friday, Jan 16, 15 @ 11:16 am:

    Why not index the tax - go from cents per gallon to a percent of price - avaoid the pain of raising it again later?


  29. - Obamas Puppy - Friday, Jan 16, 15 @ 11:17 am:

    Tax tax tax - I feel the shaking already.


  30. - Carl Nyberg - Friday, Jan 16, 15 @ 11:18 am:

    Any new transportation spending should include more money to expand public transportation & bike paths/infrastructure.


  31. - Realreporter - Friday, Jan 16, 15 @ 11:21 am:

    It’s great to say Senator Darrin Le Hood call for raising taxes. I always knew he was a Liberal Republican like his dad. Now that Darrin is more comfortable in his own skin watch for him to support further revenue enhancements. Darrin get it. He knows darn well Illinois has a revenue problem and not a spending problem.


  32. - anon - Friday, Jan 16, 15 @ 11:21 am:

    The study out yesterday ranks the IL tax system as the nation’s fifth most regressive. So what kind of tax are Republicans willing to raise? A regressive one — their favorite kind. Maybe IL can move to fourth or third most regressive tax system.


  33. - VanillaMan - Friday, Jan 16, 15 @ 11:24 am:

    Gas taxes are regressive and unfairly impacts small and medium sized trucking businesses.

    Or something like that. I’m still trying to use the “unfair” angle to justify raising taxes!


  34. - Mason born - Friday, Jan 16, 15 @ 11:24 am:

    I’m fine with raising the tax. However the money incurred needs to be spent only on maintaining the highways and automobile infrastructure. Not placed in General Revenue or spent on feel good projects.

    We already have some rough roads in this state that need serious work. Most of which we are told we cannot afford to repair. Taxing gas requires the people using the infrastructure to pay for it. The least they should get in return is serviceable roads.


  35. - Res Melius - Friday, Jan 16, 15 @ 11:27 am:

    Illinois is one of a few states who adds a sales tax on gasoline (which goes to the general fund). This, along with additional per gallon county/city taxes, is why Chicago area stations have some of the highest gas prices in the country. Also, recent gas price reductions are not helping general fund revenues.


  36. - Enviro - Friday, Jan 16, 15 @ 11:34 am:

    We need a progressive state income tax, and not more regressive gas taxes. The gas taxes will always be diverted to non-transportation programs no matter what is promised. Nothing justifies a raise in Illinois’ regressive gas taxes.


  37. - anon - Friday, Jan 16, 15 @ 11:34 am:

    Why is it the GOP favors making a regressive system even more so, while adamantly opposing a progressive income tax? What’s wrong with basing taxes on the ability to pay instead of the inability to pay? Why is soaking the poor preferable to soaking the rich?


  38. - dupage dan - Friday, Jan 16, 15 @ 11:34 am:

    There are some progressives out there who are keen on changing how we levy taxes on the travelling public. Instead of charging a tax per gallon purchased, the idea is to install and device on the vehicle that records number of miles driven and on what roads. This is useful due to the increasing number of high efficiency vehicles on the road. Electric cars, for example do not use petroleum based fuels (supposedly) - at least not the ones purchased as a road side gas station. Less gallons bought, less taxes collected. This is your reward for buying the fuel efficient vehicle (snark). I am one who drives a LOT and uses a high efficiency engine. I would hate the new regime, were it to take effect, but believe it is more fair than the current one.


  39. - A Citizen - Friday, Jan 16, 15 @ 11:35 am:

    The tax has not been raised in X years …. Who the double toothpix let that happen? Some one or more should be fired and go to jail! Or, more reasonably, NO more taxes, manage the money you get already … if you can!


  40. - Mouthy - Friday, Jan 16, 15 @ 11:36 am:

    “Why is it the GOP favors making a regressive system even more so, while adamantly opposing a progressive income tax? What’s wrong with basing taxes on the ability to pay instead of the inability to pay? Why is soaking the poor preferable to soaking the rich?”

    Guess you answered your own question.


  41. - Leroy - Friday, Jan 16, 15 @ 11:44 am:

    Why not means test?

    Keep all you receipts for gas, and add a line to the Illinois 1040 that says “Enter the amount of gas your purchased this year”

    We can have 5 or 6 tiers/rates based on your income.

    Presto! No regression. State gets more money, those who can afford to pay more, do.

    Everyone wins!


  42. - Mouthy - Friday, Jan 16, 15 @ 11:49 am:

    So Leroy if I entered $50 on my 1040 gas line how is the state going to prove different.


  43. - Amalia - Friday, Jan 16, 15 @ 11:49 am:

    hey, maybe change is possible. over in Michigan the Republican Governor just vetoed a bill pushed by the NRA which would have allowed domestic abusers access to guns.


  44. - Me - Friday, Jan 16, 15 @ 11:51 am:

    I would like to know how many gallons were taxed in 1990 and how many in 2014?


  45. - Wordslinger - Friday, Jan 16, 15 @ 11:52 am:

    Guy, no one’s proposing a gasoline tax bump for pensions. I doubt very much that anyone would or that it would go anywhere if they did.

    Capital plans mean infrastructure, and use a revenue source to issue bonds to get cracking right away.


  46. - Rich Miller - Friday, Jan 16, 15 @ 11:58 am:

    ===I would like to know how many===

    The comment section isn’t Google. How about using it and then adding something to the conversation?

    Thanks.


  47. - pothole - Friday, Jan 16, 15 @ 12:08 pm:

    According to IDOT - ““Both MFT receipts and MVR fees for highway program use generally have been flat or lower for the past several years. MFT revenues have decreased nearly $100 million, from $584.6 million in 2007 to $490 million in 2013.”

    More efficient cars, people driving less, and inflation (purchasing power) are huge problems. A MFT increase is a logical short-term fix.


  48. - Sunshine - Friday, Jan 16, 15 @ 12:12 pm:

    We appear to be middle of the road nationally with our gas tax, but enjoy a great deal more truck traffic than most states.

    One thing for certain is that gas prices will increase just as fast as the Arabs flood the market with more and more crude, driving down prices, putting American and Canadian producers out of business, then raising prices by limiting production. Did it quite nicely in the late 70’s and 80’s.

    Still think we need a gas tax increase as part of our rebuilding Illinois, however, restrict the tax to highway and bridge funds only, without the ability to strip those funds or divert the highway fund money.


  49. - M Python - Friday, Jan 16, 15 @ 12:23 pm:

    The trouble with going to a per mile gas tax is that it is a disincentive to purchase a fuel efficient vehicle. Petroleum is a finite resource and fuel conservation is still in our long term interest. Fuel efficient vehicles also reduce the amount of pollution out the tail pipe


  50. - Rich Miller - Friday, Jan 16, 15 @ 12:24 pm:

    The trouble with going to a per mile gas tax is that it is an outrageous government interference in privacy.

    Fixed it.


  51. - dupage dan - Friday, Jan 16, 15 @ 12:34 pm:

    Yes, so it’s an interference in privacy. I agree. It is also hugely unfair that a person driving an electric car pays nothing for the use of the road and a low income person driving a comparably sized vehicle with average fuel economy pays much more. Talk about regressive.

    The technology is there. I personally know someone who works in the DC area who reports that this strategy is in the works. How long it will take? I have no idea. Be afraid - be very afraid. 1984 is here.


  52. - Logical - Friday, Jan 16, 15 @ 12:55 pm:

    Until a method is devised and implemented to prevent taxes for roads to be spent on other pork projects, the gas tax should not be raised. Most people would support a modest gas tax increase if the money went to roads. But we all know it will be diverted for uses that many don’t support. Stop the “bait and switch” and more taxpayers will be open to modest increases in specific taxes. But continue the deception and most people will just say no.


  53. - Mouthy - Friday, Jan 16, 15 @ 12:56 pm:

    If you drive an electric car you pay utility taxes on the charge, license fees, and I’m not polluting the environment making the world a better place. If an argument can be made that an electric car gets a free ride then I should be able to make the argument that because I don’t have kids I shouldn’t have to pay a tax share towards school buses..


  54. - Precinct Captain - Friday, Jan 16, 15 @ 12:56 pm:

    ==- Nearly Normal - Friday, Jan 16, 15 @ 10:46 am:==

    At least one of those charts is wrong. API has red-shaded states at 49.5+ cents/gallon. It lists Illinois at 49.1 cents.

    http://www.api.org/oil-and-natural-gas-overview/industry-economics/fuel-taxes/gasoline-tax


  55. - bored now - Friday, Jan 16, 15 @ 1:03 pm:

    if rauner gets republicans to raise taxes, i’m eating crow…


  56. - Wordslinger - Friday, Jan 16, 15 @ 1:05 pm:

    logical, you tie the tax increase to the bonds issued for the work. Done and done.

    People have been yapping about mileage meters for years, and it’s been tested with volunteers in about 20 states, but no ones been crazy enough to try to make it a law.


  57. - Carl Nyberg - Friday, Jan 16, 15 @ 1:14 pm:

    There are two reasons to talk about taxing mileage.

    The main one is to avoid doing anything. It’s a way of pretending there’s some other option around the corner so we can avoid raising taxes on petrol now.

    The other is the Right Wing fetish for sticking it to people who do drive more fuel efficient vehicles. These people are tools for the oil industry which has been closely aligned with the Republican Party (particularly the faction aligned with Bush family) for decades.


  58. - Carl Nyberg - Friday, Jan 16, 15 @ 1:19 pm:

    “Gasoline taxes & tolls pay for one third of cost of state & local roads.” See Tax Foundation No. 353 dated January 17, 2013.


  59. - liandro - Friday, Jan 16, 15 @ 1:21 pm:

    Rich Miller - Friday, Jan 16, 15 @ 12:24 pm:
    —The trouble with going to a per mile gas tax is that it is an outrageous government interference in privacy.—

    Spot on, Rich, couldn’t agree more.

    As to the gas tax: given how long it has been since it has been adjusted for inflation, combined with the drop in gas prices, it seems like a logical time to address it. Raising tax percentage rates is one thing, raising static fee taxes to adjust for inflation is another.

    I’d prefer neither, but I would also like to eat cheesecake without paying the price in the gym (or on the scale…).

    I do fully sympathize with Casual Observer, though: “Everybody has their hands in the road fund.”


  60. - anon - Friday, Jan 16, 15 @ 2:05 pm:

    The last capital plan passed in 2009 is funded by increases in a variety of regressive taxes as well as by video poker. The majority of Republicans voted for HB 255, which jacked up the sales tax on candy, certain beverages, grooming & hygiene products and alcohol. It also raised fees for DLs and vehicle registration. So the GOP has no trouble raising regressive taxes. On the other hand,their platform opposes a graduated income tax.


  61. - flea - Friday, Jan 16, 15 @ 2:11 pm:

    for perspective Illinois is # 2 in the nation in the sales of diesel fuel……so whatever increase results in some serious $


  62. - Jake From Elwood - Friday, Jan 16, 15 @ 2:21 pm:

    I would prefer this to a reinstatement of the state income tax to 5%.


  63. - Mason born - Friday, Jan 16, 15 @ 2:21 pm:

    flea

    FYI a large chunk of that is Ag use. Ag gets the tax back for non-road use so a wash.


  64. - SAP - Friday, Jan 16, 15 @ 3:05 pm:

    Average fuel economy is at an all-time high and on an upward trend, although it has dropped a bit recently with cheap gas. Raising the per gallon tax seems logical enough both to make up for looses from increased fuel efficiency and to drive future fuel efficiency increases.


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