Editorial

FEDERAL GAS TAX HIKE FUELS TAXPAYER CYNICISM

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The federal gasoline tax edged upward last weekend - affecting wholesale gasoline prices on everything from cars and boats to trains and airlines.

These days, Americans are becoming grudgingly accustomed to tax hikes. But this newest gas tax increase represents a change in direction down a disturbing road.

A portion of this money will not be used for road improvements, but to help offset the federal deficit. Congress can't seem to balance the budget by reducing spending. This is just another example where income was increased to help cut the deficit. Some critics say the money should go to needed road improvement projects across the nation, for which the tax is earmarked and collected.

In addition, the increased federal tax spells disaster for plans to raise Missouri's gas tax. Missouri's gas tax is 11 cents a gallon, at least 5 cents less than neighboring states' tax.

The State Highway Commission has considered putting a gas tax proposal before Missouri voters to finance the state's 15-year unfunded highway needs study. Now, those plans may have trouble moving ahead. That's because Missourians may now pay more for gas without any accompanying road improvements.

Americans may be headed down the road of many European countries, where gas is more than double the price here. That's because the price is inflated by numerous taxes, making it a luxury item for many.

If this small increase in the tax is accepted by the public as a way to reduce the deficit, higher increases may be proposed in the future.

Another problem, say some state highway officials, is that Missourians may pay an unfair share of the new revenues. Those states that rely more heavily on mass transit may pay less. On average, Missourians rank fourth in the highest driver-per-gallon on fuel consumption. That means the tax increase decidedly will affect our drivers.

There's a growing cynicism about taxes and government. For now, the increase might not be felt at the gas pump as retailers absorb the costs due to a recent drop in wholesale prices. But as the Persian Gulf crisis puts a continuing crimp on the oil market, the price will likely rise. And that will only feed people's black tax mood.