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Veto means potholes, slower driving

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Thursday, Apr 03, 2008 - 12:32:14 am CDT

Gov. Dave Heineman has vetoed a bill that would have raised the gas tax by 1.2 cents a gallon. He’ll probably veto another bill that would raise the gas tax by 3.3 cents a gallon.

No surprise there. Heineman’s vetoes will be popular at a time when gas prices are at record highs and rising, perhaps to $4 a gallon by summer.

But it would be disappointing and contrary to the long-term interests of the state if Heineman also vetoes LB846, a bill introduced by Sen. Deb Fischer of Valentine, that would change the mechanism for taxing fuel.

That bill, intended to be revenue neutral, would rework Nebraska’s system for taxing fuel, exchanging 7 cents of the current fixed fuel tax for a 5 percent sales tax on the average wholesale price of gas.

That change would be an important improvement in the system because it would help revenue keep pace with inflation. The old per-gallon system doesn’t automatically adjust for cost of living increases.

It may surprise Nebraska motorists to learn they are actually paying less in gas taxes than they were 20 years ago, when adjusted for inflation. Last year, motorists in Nebraska paid an average of 27 cents per gallon in taxes. That would be equivalent to paying about 15 cents in 1987, when motorists were actually taxed 18 cents per gallon.

Road funds are drying up. The federal highway trust fund is scraping bottom. State officials expect federal road funding for Nebraska will drop about $80 million next year.

Meanwhile, the cost of road construction materials such as cement and steel, as well as the petroleum-based materials used for asphalt roads, continues to climb.

Growing Nebraska communities justifiably believe they deserve a bigger proportion of state road dollars. Lancaster County grew by 9.5 percent from 2000 to 2007, yet Lincoln continues to get back only 29 cents of every dollar its residents pay in fuel taxes.

An important thing to remember about the gas tax is that it goes strictly to road and street construction and repair. It’s not diverted to other uses. If you drive, you need a road, and you should pay.

The impact of the gas tax should be kept in perspective. A penny per gallon increase amounts to less than $10 a year for a driver who averages 18 miles per gallon and drives 15,000 miles a year.

Would it be worth $10 a year to get those potholes fixed, or maybe lengthen a turn lane so traffic doesn’t back up during rush hour?

Politicians like to take credit for holding the line on taxes, but they also should take the blame when there isn’t enough money to keep the roads in good shape.


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Kept in Perspective?? wrote on April 3, 2008 8:21 am:
" Wow! You did it again. "This tax will ONLY cost the average tax payer $10 per year". How stupid. How many times have you said that in similar settings. This will only costs $10/year, that only $15/year, this only $5/year, etc., etc., etc. Wake up!! Eventually those "only costs" add up to an unbearable amount. Blame the governor for pot-holes if you want...as for me I will praise him for insisting that the State live within a budget, just like most of us must do. Your views are soooo short sighted. "
MarkyMark wrote on April 3, 2008 10:28 am:
" I cant believe even our govenor gives us knee jerk reactions when it comes to taxes. Because the federal government is nearly bankrupt under the Bush rule, we are going to have to do this on our own Govenor. We cant just spend and borrow from China like our current leader. Having said that, we are going to have to pay more in taxes to keep our infrastructure sound and safe. Why be upset by paying a few cents per gallon for decent roads and bridges. We are going to get taxed somewhere for it what difference does it make if it is on gasoline. I am not upset with the gas tax. I am upset with the "other" $3 per gallon we are paying. "
Big Bad Red wrote on April 3, 2008 11:22 am:
" First my Smokes now my Roads....
Just 1 more reason not to vote for Heineman again. "
Who's wrote on April 3, 2008 11:42 am:
" fault is it that nebraska is notoriously broke? This isn't the first time that they are short on funds. The people are taxed to death. I don't say that lightly. I say that because I have lived in several states and have compared overall taxes, not just gas or income. The state I reside in now has five times the interstate miles, more cities and towns and a larger population who drive more than 15K miles a year. The road dept has had over 3 billion dollars a year for road repair and construction. The roads for the most part are very good. One thing I've noticed is that not all roads are up to federal funding requirements that pertain the sight. They apparently don't get funding because the sight line is not up to par.. However they are safe because the topography is such that you can't speed due to curve and dropoffs. Could you imagine filling a 500 ft canyon with fill and cut a mountain down 500 ft to get the fill? On that, I have to say they can build a road through rock faster than nebraska can through dirt. Hows that happen? For one because on the bid, the bidder has to agree to a fine if its not done on schedule. And they enforce it. So keep crying and keep the taxpayers kicking in extra dollars until those who can afford it, do as I did. Leave. "
A Driver wrote on April 3, 2008 12:48 pm:
" Many writers quote the following taken from this article, "It may surprise Nebraska motorists to learn they are actually paying less in gas taxes than they were 20 years ago, when adjusted for inflation."
The US income tax when enacted in 1913 provided for an exemption of $3,000 from income, meaning that amount of income was not taxed in 1913. The $3,000 adjusted for inflation would be in excess of $60,000 today. So when you say "we are paying less for gas today than 20 years ago when adjusted for inflation", then you should advocate that the first $60,000 of our income should not be taxed or don't make such comparisons. "
Regressive wrote on April 3, 2008 1:58 pm:
" Instead of increasing a regressive tax, how about we find other revenue sources for our roads? Let's make a toll road - so that those using the road are paying for it. Or some other method of revenue that isn't regressive and that doesn't disproportionately affect those who are the poorest among us.

While I can't stand the Gov., this veto makes sense. How about we tax gas profits? "
The prom king wrote on April 3, 2008 2:50 pm:
" Your governor is just doing what he thinks is popular and not what in the best interest of the state. I say your because I didn't vote for him and won't take credit for his blunders. We need money for roads but we also need a performance audit of the roads department. And he knows if that is done it will expose things that he already knows are wrong. The waste would turn his blind eye into a black eye that his political career can't take. The state auditor has steered clear of the roads does that surprise anyone? I'm sure at the direction of the governor. He is positioning himself for Nelsons spot when the time is right. So don't have a short memory and mark my words lakes have been known to turn over and bring the dirt to the top. It will come out! "
User fee wrote on April 3, 2008 6:57 pm:
" Another missed opportunity (in my opinion) to tax those who use the roads. Lincoln's streets need help, and perhaps this might have been part of an answer. I voted for the Governor back when, but I'm beginning to question that with several of his actions. "
hey wrote on April 3, 2008 8:04 pm:
" how about a toll on charleston. all the traffic using this "non detour" route could pay cutting through the neighborhood and use the money for 2015 vision. "
Not Neutral wrote on April 3, 2008 10:40 pm:
" LB846 is not "revenue neutral". It is a plain old tax increase. Also it is gutless way for senators' to raise taxes. This should be self evident with the recent increases in gas prices. With a 5% sales tax, much more taxes would be collected at the expense of citizens. I expect the government authorities to do maintain roads systems with in the existing tax system. Why is it that every time there is a new proposed tax schemes the proponents wail and moan that if it is not adopted that basic services will be eliminated? Where have the current taxes gone? Use wheel taxes for roads. Where does the Editors think that this magical mystery $10 will come from? It will be disposable income. Such as the income that is spent to pay for Journal Star subscriptions. "
I live wrote on April 4, 2008 1:02 pm:
" in a state where there is a law that states ;the government cannot raise taxes without a vote of the people. Why doesn't nebraska have a law like this? It's satisfying to know that anything the state wants to raise taxes on has to be approved by the taxpayers. Guess what? It works. If the people had a choice a lot of this junk taxation would never fly, but, some things that are important to the taxpayers would. Give the people a chance to show they are intelligent after all. "
Kevin of Lincoln wrote on April 6, 2008 11:09 am:
" Why do we need to raise the gas tax when we have some of the highest fuel taxes in the nation. Lincoln takes a wheel tax which we was suppose to pay for roads but gets siphoned for other things. The state needs to become more efficient. I have lived in other states and wonder why Nebraska says it is strugling when other states can do the same thing for less money and do it better. I too get tired of hearing how this tax will only raise your tax by $10/years and your home taxes will only increase $300/year and the wheel tax will only increase $5/wheel. Get a clue it all adds up to a lot of money coming out of tax payors pockets that are trying to figure out how they will live. Some here, some there does add up. Yes every government entity needs to be tightening their belt right now to weather the recession we will all be dealing with. By doing so now we can weather it with better ease. I also would point out many make less right now than 5 years ago and last I checked many Nebraskans wages have not kept pace with inflation either so the inflation argument is a zero. If state and local leadership were to concentrate on making this a more friendly state for its citizens and business we would grow and get a better tax base to work with. The way it stands now why would anyone pick Nebraska for a place to open a business or live. Until we get some forward thinking leadership in our different government entities we will continue to suffer the high taxes. I would hope that everyone in Nebraska would take a role in the election process and get real leadership in key positions that will make a positive difference. One last point I want to make is it is the small business in every recession that has kept the economy chugging along not big corporate. In every recession it is big corporate that makes it worse.Look at employment figures for the last month and it stands out very clear where job creation is coming from. So why then does the state and city governments not take advantage of that and make something happen. Oh I know, its too much work. "

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