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Not if, but when and how high for gas tax?

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* From the Illinois Policy Institute’s news service

An Illinois Republican lawmaker says the question isn’t whether the state should increase its gas tax to raise new revenue for roads and other capital projects. It’s a matter of how high it should be raised.

State Rep. Dan Brady, R-Bloomington, said there’s been plenty of talk at the State Capitol about raising the state’s gas tax. Now, those talks are narrowing in on how high the state will raise the tax.

“I don’t know how high we’re going to go,” Brady said. “But certainly the governor and others want a capital bill. We want a capital bill. Our infrastructure is crying for a capital bill in the state of Illinois.”

Brady isn’t sure when lawmakers may sit down and formalize the plan to raise gas taxes in order to build new roads. But those talks may not be too far off.

“I think that [a gas tax increase] may absolutely be where we can come together,” Brady said. “Whether that’s a five percent increase, I don’t know. That’s going to be the ultimate debate.”

The Illinois News Network reported Sunday that legislative leaders planned to meet this week to discuss a capital plan and gas tax hikes, but spokespersons for House Speaker Michael Madigan, House Minority Leader Jim Durkin and Senate Minority Leader Bill Brady denied that a meeting was even scheduled.

But Gov. Bruce Rauner, fresh off his return from an economic summit in Japan and China, said Monday that the leaders are scheduled to meet Tuesday. […]

In response to the governor’s statement about a leaders’ meeting Tuesday, Senate Democrat spokesman John Patterson confirmed it.

“My understanding is the Republican leaders were interested in having a discussion among the leaders, and the Senate President always enjoys working with his colleagues across the aisle,” Patterson said. “I’m not aware of any set agenda.”

posted by Rich Miller
Tuesday, Sep 19, 17 @ 11:43 am

Comments

  1. Rich; Speaking of taxes, the Legislature passed a bill and the Governor signed (100-0474) where a township could not be sued for excessive accumulation of taxpayer funds unless it had reserves of more than 2.5 when it adopts a levy. Think about this. If a township has an annual three year expenditure of 5 million, it can then accumulate reserves of up to 12.5 million before taxpayers can legally sue for excess accumulation! The Legislature passed this unanimously and the Governor signed it. Think about this in terms of school districts or counties. This state is really screwed up.

    Comment by Anonymous Tuesday, Sep 19, 17 @ 11:55 am

  2. So… is Dan prepared to campaign on the need to raise the gas tax to get a capital bill???

    http://wglt.org/post/dan-brady-asks-voters-another-state-house-term

    Comment by Anon221 Tuesday, Sep 19, 17 @ 11:58 am

  3. Gas tax for roads and other capital projects?
    I thought the lock box amendment restricted gas tax to roads or is there an exception or did the legislature already figure a loop hole in the amendment?

    Comment by DuPage Saint Tuesday, Sep 19, 17 @ 12:03 pm

  4. The State of Missouri welcomes any additional raise in the gas tax. Currently the disparity is $0.15 per gallon.

    Comment by BIG R. Ph Tuesday, Sep 19, 17 @ 12:16 pm

  5. If Rauner supports that this is needed because he can’t use the extra taxes he has been provided I would support it. But since Rauner has been saying the inc tax was unfair and bad, let him eat cake

    Comment by Ghost Tuesday, Sep 19, 17 @ 12:18 pm

  6. Standing tall for the working poor and middle classes. Attaboy.

    Comment by Blue dog dem Tuesday, Sep 19, 17 @ 12:47 pm

  7. I am tired of these tax and spend Republicans, don’t they know they are killing our economy with their taxes.? Our taxes are already the highest in the nation and now they want more income distribution!? /S

    That was fun!

    Comment by JS Mill Tuesday, Sep 19, 17 @ 12:54 pm

  8. We have the 11th highest gasoline tax and the 10th highest diesel tax in the nation already. Currently gas tax is 34.04 cents per gallon (18.4 federal tax plus 15.61 state). Diesel tax is 35.32 cents per gallon (24.4 federal tax plus 10.92 state). Bumping up the gas tax will drive the trucking industry away. And with fuel efficient vehicles/electrics the returns on this tax will be diminishing over the years. Another foolishly shortsighted decision by Illinois Pols.

    Comment by Texas Red Tuesday, Sep 19, 17 @ 1:34 pm

  9. Texas Red:

    And how would you pay for roads? You can complain about the gas tax all you want but gas in the US is relatively cheap.

    Comment by Demoralized Tuesday, Sep 19, 17 @ 1:55 pm

  10. I am waiting on a press release from the Rauner, Pritzker and Kennedy campaigns on this issue.

    Comment by blue dog dem Tuesday, Sep 19, 17 @ 1:55 pm

  11. ==Standing tall for the working poor and middle classes. Attaboy.==

    What, you want a rich-only gas tax? Or maybe a graduated gas tax? You’re graduated income tax solution isn’t going to solve the infrastructure needs in the state.

    Comment by Demoralized Tuesday, Sep 19, 17 @ 1:57 pm

  12. Texas Red, please cite evidence for your claim. Illinois is among the lowest gas tax rates in the US. Its needs, however, are among the highest due to differed maintenance. The last gas tax increase in Illinois was 1989. Do you pay the same price for anything now that you paid in 1989. Trolling the internet with tea party nonsense about how people shouldn’t have to pay taxes for basic government services is clear for all to see. Raise the gas tax, index it to inflation, charge electric and hybrid car owners their fair share, and let’s get people to work again.

    Comment by Bored Chairman Tuesday, Sep 19, 17 @ 2:39 pm

  13. Good golly, could we just end our cap the subtraction for federally taxed retirement?

    Or should the official policy be to let Grandma and Grandpa run out on their bills and let them grand kids pay inflated tuition with huge student loan balances and pay higher taxes to pay for public debt that exists because Grandma and Grandpa couldn’t be bothered to support politicians that would adequately tax for the services they wanted?

    Comment by Anon Tuesday, Sep 19, 17 @ 2:58 pm

  14. Hey Texas Red, learn how commercial trucking works:

    https://en.wikipedia.org/wiki/International_Fuel_Tax_Agreement

    Comment by Anon Tuesday, Sep 19, 17 @ 3:01 pm

  15. Critics jumped all over the Preckwinkle pop tax for being regressive. There’s no question that the gas tax is regressive. Hybrid and electric vehicles are more expensive than older gas guzzlers, which means drivers of lesser means will likely buy more gas and pay more gas taxes than their more affluent counterparts.

    Comment by anon2 Tuesday, Sep 19, 17 @ 3:09 pm

  16. Don’t tractors, grain trucks, and other farm vehicles use our roads? At least some of the time? Can’t we get a little help here? What are the dynamic duo waiting for? They aren’t going to get many farm votes anyway.

    Comment by blue dog dem Tuesday, Sep 19, 17 @ 3:15 pm

  17. - anon2 - Tuesday, Sep 19, 17 @ 3:09 pm: -
    anon2, You are right.

    Comment by Mama Tuesday, Sep 19, 17 @ 3:17 pm

  18. Dem. Sorry missed your post..I have always believed in some gas tax. But ya can’t keep going to the working poor and middle class well so soon after just hiking income taxes. Can’t ya at least wait a couple years.

    Comment by blue dog dem Tuesday, Sep 19, 17 @ 3:19 pm

  19. I guess we will just tax ourselves with so many state gas cards that are issued good grief.
    At some point we need a reset and it appears bankruptcy will come sooner than later.

    Comment by Ozzie Tuesday, Sep 19, 17 @ 3:26 pm

  20. If there were ever a tax that people forget about quickly, it’s a gasoline tax. Because the commodity fluctuates up and down with such frequency, keeping track of the tax on it becomes almost moot.

    It also is the quickest way to get infrastructure money for a capital bill into the pipeline (no pun intended…well maybe)

    Comment by A guy Tuesday, Sep 19, 17 @ 3:26 pm

  21. With gas prices, it’s all relative. When driving between states, everyone already knows to fuel up before crossing the IL border. When driving between counties, everyone already knows to fuel up outside Cook. When driving to Chicago, everyone already knows to fuel up in the suburbs. Raising the gas tax will change none of these existing habits.

    Smart to raise the gas tax while prices are relatively low.

    Comment by City Zen Tuesday, Sep 19, 17 @ 3:45 pm

  22. We are best to raise the existing tax since more revenues are needed. The alternative to a per gallon or % of purchase price tax is a mileage driven-based tax. It would be more equitable as concerns electric/hybrid vs. strictly internal combustion engines. But it would require in-vehicle technology that was tamper-proof and some reporting mechanism. I think that is being tested in the Pacific NW somewhere. Pending those results we are stuck with the existing mechanisms. The tax receipts are used to leverage federal dollars as well.

    Comment by stateandlake Tuesday, Sep 19, 17 @ 3:46 pm

  23. blue dog dem hit the nail on the head with his comment about farmers. They use roads all of the time, usually with a 20-foot wide dual-tired tractor on an 18-foot wide road. Now these big farmers will run 4 or 5 of them in a row tearing up the edges and forcing tax-paying cars off into the ditches to get by. And don’t get me started on fertilizer floater trucks running all year round on the shoulders.
    Farming is a business and the fuel used to produce their product should be taxed….

    Comment by downstate commissioner Tuesday, Sep 19, 17 @ 3:47 pm

  24. @Bored Chairman

    You say Illinois is one of the lowest?
    https://en.wikipedia.org/wiki/File:Gas_and_Diesel_taxes.pdf
    This 2017 chart has Illinois at number 11, with 5 of those in the top 10 NOT subjecting gas to additional state and local sales tax.

    Not saying anything here for/against the raising of the tax, just pointing out that you wanted a reference and proceeded to act like Illinois was somewhere at the bottom when it comes to gas taxes… My move from Illinois to Tx was eye popping when it came to gas taxes.

    Comment by RonO in Texas Tuesday, Sep 19, 17 @ 4:20 pm

  25. RonO,

    That chart is already outdated. California, Montana, Indiana, Tennessee and South Carolina have raised their gas taxes since January 1, and several more are likely on the way.

    http://www.foxnews.com/politics/2017/06/20/states-raising-gas-taxes-to-fund-transportation-improvements.html

    Comment by Six Degrees of Separation Tuesday, Sep 19, 17 @ 4:32 pm

  26. Oops, they missed West Virginia and Maryland, which also raised them on July 1.

    http://abc30.com/news/california-is-one-of-7-states-increasing-gas-taxes-on-july-1st/2168282/

    Comment by Six Degrees of Separation Tuesday, Sep 19, 17 @ 4:38 pm

  27. Then there are the 7 states that index their gas taxes to CPI or wholesale gas prices every year (IL is not one)…where a chart prepared 9 months ago might already be out of date for those states, too.

    https://taxfoundation.org/state-inflation-indexing-gasoline-taxes/

    Comment by Six Degrees of Separation Tuesday, Sep 19, 17 @ 4:44 pm

  28. If its inconsequential, what the heck. Make Illinois’ gas tax the highest in the nation? Heck of a capitol plan and pay down some debt to boot. What politician couldn’t run on that platform?

    Comment by blue dog dem Tuesday, Sep 19, 17 @ 5:58 pm

  29. Is there no tax in this state that you guys don’t want to raise. High taxes and terrible fiscal performance. What a combination. When Quinn got his income tax through the state only continued to spiral downward fiscally. Spend spend spend. And you wonder why people happily leave the state. Do any of you actually make money, or are you just jealous of people who do.

    Comment by Moe Money Tuesday, Sep 19, 17 @ 6:56 pm

  30. Raising the gas tax is a no brainer, the question is $1 or more?

    And while you’re raising the tax, remove the earmark to highway projects. Send it all to the General Revenue Fund.

    Comment by Odysseus Tuesday, Sep 19, 17 @ 7:21 pm

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