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Gasoline Tax Hike, FCC Deregulation

By Pat Pending

There is currently a proposal to raise the federal gasoline tax.  Before anyone supports such a tax hike, he ought to look seriously at how the current federal gasoline tax is being used.  Current set-asides require federal gasoline taxes, paid by automobile drivers, to be used for wasteful, boondoggle projects like light rail, which do absolutely nothing to benefit the drivers who paid the taxes and which become a financial drain on the communities in which they are located.  Everyone who is honest admits these projects are a waste, but they consider the federal money to be “free” and feel pressured to use it.   In addition, in order to spend money on a project like the Ohio River bridges, the feds tuck in projects for museums and other “socially desirable” projects in the area, which again do nothing to serve the drivers who pay the gasoline taxes.  Federal gasoline tax money is also used as a threat that is held over the heads of states, forcing them to go along with federal programs like VET testing and “click it or ticket” road blocks or else risk being cut out of federal highway funds.  So, as with most federal programs, the money comes from the states, a large fraction is siphoned off, and then some of the money is returned to the states, with many strings attached.

An increase in the federal gasoline tax would only increase the waste and abuse of the current system.  Instead of proposing an increase in the federal gasoline tax, we ought to be proposing that those taxes remain in the states where they were paid, so they can be used as those states think best.  Even for states that receive more federal money than they pay in, this would probably be a benefit, since the money could be used for the projects the states want most and without arm-twisting by the federal government.  Obviously, states like Kentucky may still use the gasoline tax money for political graft and corruption, but at least the money would stay closer to home where we could keep a better eye on it, and local governments are not as likely to drop a billion dollars on a wasteful project like light rail, if they are free to use the money to solve their real transportation problems. 

Many so-called “good government” groups are very opposed to the Federal Communications Commission proposal to deregulate the air waves.  They say we should call our elected officials and tell them to promote the public good rather than the private good.  That sounds very noble, but exactly what is the public good?  The last time I checked, there were just lots of private citizens, and nobody with the label “public” tattooed on his forehead.  So, when Common Cause or any other organization is promoting the “public good”, it really is promoting somebody’s private good; the only question is whose.  The only way I know to promote everyone’s private good is to treat everyone equally under the law and to respect everyone’s property rights.  So, once someone has the right to broadcast at a certain frequency, the government should respect that right and leave them alone, allowing them to sell or lease that right as they choose, which is in line with the proposed deregulation.  As a rule of thumb, we ought to recognize that, whenever the government tries to regulate speech, or the press or the airwaves, chances are that it will protect the powerful and their friends at our expense.  Deregulation and a respect for private property rights are the best we can hope for.

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