Wyoming doesn't need any tax increases, including a proposed 10-cent-per-gallon hike on gasoline and diesel fuel. Fortunately, when the Joint Interim Revenue Committee met in Cheyenne last week, it rejected the fuel tax hike.
But that doesn't mean it's dead forever. The bill won't be sponsored by the panel, but that doesn't mean an individual legislator won't bring it back during the budget session that begins in February.
A fuel tax increase has frequently been considered in recent years, but it hasn't been very popular, and it has usually died in committee. No one wanted to touch it when economic times were better. Now that Wyoming is still in the grip of the recession, however, some lawmakers are looking for any pool of money the state can get its hands on.
Gov. Dave Freudenthal, a longtime opponent of a gas tax hike, signaled at a news conference last month that he has softened his position. He told reporters that if the Legislature passed the tax increase, he'd be "willing to take a look" at it.
That would be a mistake. Given the economic downturn and uncertainty about when a recovery is likely, this simply isn't the time to hit Wyoming consumers with any kind of tax increase. Many people can't afford to pay more at the pump, and they shouldn't be expected to without a good reason.
Frankly, there isn't one. Earlier this year, the governor ordered all state agencies, the University of Wyoming and community colleges to cut their budgets by 10 percent. Salaries were frozen, some positions were left unfilled, and some layoffs occurred. But current estimates by state officials indicate there's sufficient money available to operate state government for the next fiscal year without additional budget cuts or layoffs. Even if that changes, the state should still look at reducing spending before raising taxes.
Supporters note that Wyoming's tax rates of 14 cents per gallon for gasoline and diesel fuel are the second lowest in the nation. That's true. But the fact we have low rates is an advantage for consumers, not an excuse to raise the tax.
Rep. Mike Madden, R-Buffalo, a supporter of the bill, estimated the tax increase would bring in about $70 million annually. The money would be split between the counties and the state for highway maintenance.
Even though the federal stimulus helped Wyoming address some of its backlog of road projects earlier this year, finding money for highway maintenance is still a problem. But there are other solutions worthy of consideration besides a fuel tax hike.
The majority of the state's highway maintenance needs are along heavily traveled Interstate 80, which serves as a national corridor for truck traffic across southern Wyoming. Because commercial trucks do the vast majority of damage to I-80, making it a toll road for trucks has been proposed. If lawmakers decide they need additional highway revenue, it would be fairer to seriously consider the toll road idea before increasing taxes for all motorists.
Madden also claimed the 10-cent tax increase wouldn't be passed on to all consumers, because fuel companies would absorb some of the cost.
That simply doesn't make business sense. When is the last time you heard of a company, apparently out of the goodness of its heart, not pass the entire amount of an increase on to consumers?
Fuel tax supporters haven't been able to justify an increase. The bill should stay dead for 2010.
Posted in Editorial on Sunday, November 22, 2009 1:00 am Updated: 5:00 pm. | Tags: Chad Baldwin, Editorial, Editorial Board, Kerry Drake, Nathan Bekke, Opinion, Ron Gullberg, Sally Ann Shurmur, Gasoline, Diesel, Dave Freudenthal, Mike Madden
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