A Gas Tax Hike Is the Wrong Way to Fund Highways

Various reports suggest that policymakers—including President Trump himself—are considering raising the federal gas tax, by as much as 25 cents per gallon. Supporters argue that a hike is necessary to replenish the Highway Trust Fund, and—for those concerned about climate change—some also argue that a higher gas tax is needed to encourage drivers to switch to electric vehicles or mass transit. These arguments are incorrect, even on their own terms. A gas tax is in principle a very blunt instrument for funding highway usage. And in terms of the political optics, imposing a huge new regressive tax on drivers would justify the critics of the recent income tax reform plan, who claimed that Republicans wanted to help the rich at the expense of the poor.