Why did the White House pass up an opportunity to support a (mostly) good, bipartisan idea?

Don't let a perfect gas tax be the enemy of a good one.

Jared Bernstein, a former chief economist to Vice President Biden, is a senior fellow at the Center on Budget and Policy Priorities and author of the new book 'The Reconnection Agenda: Reuniting Growth and Prosperity.'

Carbon capture: Gas taxes aren’t keeping up. (Reed Saxon/Associated Press)

The latest deadline facing Congress is not the debt ceiling. Nor is it spending bills to keep the government open. It’s the Highway Trust Fund, and if this source of financing for road and transit projects across the land is not replenished soon — like, in a few weeks — states will have to start slowing down or delaying infrastructure projects, which is exactly the opposite of what we need them to do given our still-recovering job market.

Since Congress has long been unwilling to come up with a solution to the bleeding Highway Trust Fund, the usual move in recent years has been to temporarily patch the hole with a transfer from general revenues, and that’s probably what will happen in this next round, too. But you really don’t need to be much of a budget wonk to understand the fundamental problem here: The federal gas tax that supports the trust fund was set at 18.4 cents per gallon in 1993, and it has not been updated since. Not for inflation, not for the improved mileage of the current fleet, and not for the fact that people are driving less (see this quite remarkable figure).

That’s why this bipartisan proposal from Sens. Bob Corker (R-Tenn.) and Chris Murphy (D-Conn.) to raise the federal gas tax by 12 cents over two years and then index it to inflation struck me as uncharacteristically bold and sensible. To be sure, their idea has a serious flaw in that it foolishly includes other tax cuts so as to meet the “no new taxes” pledge to uber-lobbyist Grover Norquist. But in these gridlocked and benighted times, when partisans come up with an idea that’s even partially smart, it should be viewed as an opening salvo over which policymakers should immediately start haggling.

The White House, however, quickly said no. From Marketwatch:

White House spokesman Josh Earnest said the Obama administration is on record as opposing a hike in the gas tax. Asked at the daily briefing if this meant that the White House still opposed the idea, he answered: ‘Correct.’

It’s not hard to come up with reasons for their opposition. They may have correctly surmised that this wasn’t going anywhere in the House, so why invoke anti-tax sentiment? They may have been spooked by the fact that it’s a regressive tax, in that it hits less-well-off drivers harder than the wealthy. (BTW, the proposed Corker/Murphy offsets are also regressive, making that part of the idea even worse.)

But while those are solid rationales, they are trumped by the fact that this is the simplest, most direct and most effective way to finance the trust fund, and not just for the next few years, but, thanks to the built-in inflation adjustment, for the longer term. It’s also a tax on carbon, and in that sense it is completely in sync with the administration’s environmental agenda.

No one in their right mind believes we can maintain a productive, world-class infrastructure on a gas tax untouched since 1993. Leadership thus demands that reality-based policymakers — and I usually put the president solidly in that category — take a stand and make this case to the public, especially when there’s at least a patina of bipartisan support behind you.

To fail to do so is to park your car at the corner of Dysfunction Junction, right near the giant pothole.

Show Comments
Most Read
Next Story
Daniel W. Drezner · June 25, 2014

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.