Federal Gas Taxation A Rural Com m unity Analysis Mary McQuiggan - - PowerPoint PPT Presentation

April 26th, 2006 Policy Brief Raising the Gas Tax

Federal Gas Taxation – A Rural Com m unity Analysis

Mary McQuiggan Sarah Helen McConnachie David Pelunis-Messier Tim othee Neron-Bancel Ajay Gupta

April 26th, 2006 Policy Brief Raising the Gas Tax

Raising the Gas Tax

Current gas tax in the United States: 18 cents What is proposed here is an increase of such tax

to 2 dollars per gallon

The idea is to change consumer

preferences/ behaviors

Dryzek would call this an example of

Administrative Rationalism (Dryzek, 2005), in which issues are dealt with in a bureaucratic fashion within the public arena, and solutions are administered using rules and documentation.

April 26th, 2006 Policy Brief Raising the Gas Tax

Raising the Gas Tax

Since 2004, trust in government has declined by

statistically significant margins in 12 of the 16 countries for which tracking data is available [ including US] .

• Suri, S. 2005. Global Survey: Who Do You Believe in Anymore? Inter

Press Service, December 15, 2005.

the main explanation for economic discontent is that it's

hard to convince people that the economy is booming when they themselves have yet to see any benefits from the supposed boom. Over the last few years G.D.P. growth has been reasonably good, and corporate profits have soared. But that growth has failed to trickle down to most Americans.

• Krugman, P. The Joyless Economy. The New York Times. December 5th,

2005

April 26th, 2006 Policy Brief Raising the Gas Tax

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 US Canada Australia Poland Czech Republic Japan New Zealand Austria Ireland Belgium Italy Norway France Netherlands Germany UK US $/gallon unleaded gasoline diesel for non-commercial use

Gas tax rates for developed countries

April 26th, 2006 Policy Brief Raising the Gas Tax

An International Perspective: case studies

European Conference of Ministers of Transport

EU prescription to charge by “space and time” GPS systems being developed in Oregon for use in US to

track miles traveled and locations visited

Effective methods of cutting down traffic in

London

Minimum tax levels set to keep commercial

transport within certain countries

April 26th, 2006 Policy Brief Raising the Gas Tax

WHY THIS WON’T WORK

April 26th, 2006 Policy Brief Raising the Gas Tax

Rural Communities

• Basic Rural
• Developed Rural
• Urban Boundary Rural
• Developed Rural:
• Major population center
• Agriculture and natural resource economies
• Industrial and service jobs in Cities
• Stable or growing populations
• Diverse transportation needs

April 26th, 2006 Policy Brief Raising the Gas Tax

Rural Transportation

Concerns

Access to regional services Farm-to-market access Funding difficult to find Unavailability of public transportation choices

Characteristics

Long distances between population centers Steep grades Mountain passes Dramatic weather events Dispersed systems High cost of maintenance and construction

April 26th, 2006 Policy Brief Raising the Gas Tax

April 26th, 2006 Policy Brief Raising the Gas Tax

Consumer Reactions

Interview conducted at Farmer’s Market in

Ithaca NY

Mostly negative consumer feedback

towards a gas tax

“I wouldn’t be able to care for my elderly parents

who live in Buffalo”

“Its all a hoax. The government is not getting any

more of my money. . Just so they can line their own pockets”

“Why hasn’t the government focused more on public

transportation?”

“I depend 100% on my vehicle living in a rural area” “I would have to completely change the way I live.”

April 26th, 2006 Policy Brief Raising the Gas Tax

Consumer Reactions Con’t

Shift of values when considering the gas Tax Personal/ Self Interest Citizen/ Public Interest

April 26th, 2006 Policy Brief Raising the Gas Tax

Consumer Reactions Con’t

Economic Rationalism

Mistrust in government entities Gas as an inelastic commodity Scientific research unnecessary and costly Financial crisis due to inelasticity of fuel usage

Administrative Rationalism

Sacrifice livelihood for the public good and reduce

dependance on gas

Migration to urban areas to find work

April 26th, 2006 Policy Brief Raising the Gas Tax

Reaction from Businesses

It takes 10 calories of fossil fuels to

produce 1 calorie of food

In rural communities, greater distances

and equipment is less efficient, leading to greater economic impact of higher gas tax

April 26th, 2006 Policy Brief Raising the Gas Tax

Reactions from Businesses

2005: In Seattle, 420,000 signatures are

collected in 32 days to repeal a 9.5 cent increase in the gas tax

Reducing our competitive advantage

abroad could force the US government to increase subsidies

April 26th, 2006 Policy Brief Raising the Gas Tax

Finding the Right Solution

Lack of trust Need for Funding

Yet US government refuses “European” style of tax

Reducing our dependence on fuel

Tax creates funds for research

An already overdue move towards self

regulation

April 26th, 2006 Policy Brief Raising the Gas Tax

A Gas Tax Managed by Communities

We must update the gas tax to a model

that will be effective in the United States

Large rural population Urban sprawl Socio-economic diversity gradient Proper allocation of revenue

Implement Epoch III initiatives:

Local councils for community based management Nestedness between local, state and federal gvts. Social Capital: community leaders and education

April 26th, 2006 Policy Brief Raising the Gas Tax

A Transition?

April 26th, 2006 Policy Brief Raising the Gas Tax

April 26th, 2006 Policy Brief Raising the Gas Tax

QUESTI ONS???????