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Gas Taxes

As gas prices go up people use less gas and therefore the State and City get less gas tax revenue. I know the State sets the gas tax rates and they have not increased them for many years. If this issue is going to be addressed in the future they should make the gas tax a percentage of the price of a gallon of gas. There would be some issue with having to recalculate the tax rate when prices change, but that should not be a major issue with computers to do the calculations. If the tax was a percentage, the State and City would collect more per gallon when the price went up, which shoud offset the fact that fewer gallons were being sold. If gas prices go down, people will drive more so the lower tax per gallon will be offset by more gallons being sold. I think this would result in a more consistent level of revenue from the gas tax.


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