ITR Urges Legislators to Oppose Gas Tax Increase

January 18, 2012 @ 03:30 PM

Muscatine, IA. -- Iowans for Tax Relief today urged the Iowa Legislature, “Do not raise the gas tax on Iowans at a time when gasoline prices are predicted to spike.” 

        Rob Solt, ITR President, said, “ITR supports the Governor and Legislators who plan to ask the Department of Transportation to find efficiencies to help pay for road repair, rather than a blanket gas tax increase that would harm Iowans’ wallets.”

        “More research needs to be done before Legislators even bring up the idea of a gas tax increase.  Iowans have been told up to 20% of gas tax revenue would come from visitors traveling through Iowa, but we have not found any research on how Iowa’s border communities would be affected by higher gas taxes. 

        “ITR believes a study of border communities would find that significant numbers of non-Iowans, who come to Iowa weekly to buy gas, groceries, etc, would rethink those trips and stay home if Iowa had a higher gas tax.  Before considering any gas tax hike, the Legislature needs to take a hard, close look at the overall consequences.”

        Solt added, “Economists are predicting gas prices this summer may be at all-time highs.  This is the wrong time to consider an increase when Iowans will already be paying a larger portion of their family budgets for transportation.”

        “We encourage the Governor and Legislators to require thorough research on the gas tax with a dynamic model that helps them see clearly all the positives and negatives,” Solt concluded.