Statement on House Transportation Tax Increase Bill

"Under Speaker DeLeo’s tax proposal, the state’s 24 cent fuel tax would increase to 29 cents per gallon for gasoline, which is a 20 percent increase, and diesel fuel would increase by 9 cents to 33 cents, which is a 38 percent increase."

The Massachusetts Fiscal Alliance made the following statement in response to Speaker Robert DeLeo’s proposed tax hike package aimed at increasing transportation spending. Under Speaker DeLeo’s tax proposal, the state’s 24 cent fuel tax would increase to 29 cents per gallon for gasoline, which is a 20 percent increase, and diesel fuel would increase by 9 cents to 33 cents, which is a 38 percent increase. Other tax increases are included under DeLeo’s plan, including a 500% increase in fees on ride share services like Uber and Lyft.

 

 “Massachusetts is a wonderful state, if you can afford it. Under the Speaker’s plan, fewer taxpayers will be able to keep up with the increased cost of living. These measures make it harder for people to make their home here and do business in the state and will only hurt the middle class—especially workers who have to drive,” stated Massachusetts Fiscal Alliance Spokesman Paul Craney.

 

“Regressive tax schemes should always be avoided. Raising fuel costs between 20% to 38% percent per gallon is not economically smart. These tax increases are going to be taken out of the earnings of hard-working taxpayers,” continued Craney. 

 

Massachusetts ranked #46 in the nation in the 2019 Reason Foundation 24th annual highway report, receiving the worst grades in the “cost per mile” and “administrative disbursements per mile” categories. The cost per mile of roadway is estimated at $216,066. By comparison, NH spends $64,176, and ME, $41,847. For an even further look into where the money goes, the simple administrative costs per mile tell an even more extreme story. Massachusetts spends $23,950 on administrative costs per mile while NH spends $5,260 and ME, only $1,142, meaning Massachusetts spends 20 times more than ME on desk jobs instead of filling actual pot holes. Massachusetts #46, ended up behind Maine #4, Vermont #19, New Hampshire #24, Connecticut #44 and only slightly ahead of Rhode Island #48.

 

“We always hear about how our elected officials are looking for more money to fix problems, yet taxpayers almost never hear Beacon Hill politicians talk about how they plan to spend our money more wisely,” concluded Craney.


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