Prices Rise, Revenues Fall

I have been calling for a reduction in the gas taxes for months. And now, here is further proof why we need the cut:

Sticker-shocked drivers skimping at the gas pump could be costing Maryland millions in unrealized vehicle taxes - threatening a source of money tapped for road and transit projects.

State officials said they believe gas tax collection is falling far below expectations because drivers are taking shorter trips or using public transit, even through fuel prices have retreated from their late-summer spike.

"As everyone knows, the price of gas has really increased," said Maryland Transportation Secretary Robert L. Flanagan, who is raising the issue during a statewide tour to unveil the department's six-year plan. "The result is people are making logical judgments in their everyday lives."

As usual, the higher the prices are, the fewer people pay for services. While the state gas tax remains steady at 23.5 cents per gallon, I would like to see that tax rate reduced at the very least to 20 cents per gallon. It may look like a relatively small cut, perhaps only 50 cents per fill-up. But the cut will save money for drivers over the long run, and provide tax relief to businesses who have vehicles on the road and with large fleets. It will ensure that gas prices may not necessarily cause these businesses to increase the prices they charge to the consumer.