RAISING TAXES is a job for politicians, not something to be handed off to the consumer price index. For that reason alone, Question 1 — on the gas tax — deserves voters’ approval.
State legislators last year passed an increase to the gas tax, the first in since 1991, pushing it from 21 cents a gallon to 24 cents. Those who worry about Massachusetts’ “crumbling bridges and roadways” — a bit of rhetorical excess, perhaps — were thrilled. In truth, the rise wasn’t all that much: 3 cents over that span of time amounts to a very modest annual uptick of less than three-quarters of 1 percent. And the higher levy is still below national averages.
None of that seems a problem. But the new law added a troubling twist: Henceforth the gas tax would rise automatically each year, going up by the rate of inflation. It’s that twist that provoked a group of activists, organized under the banner of “Tank the Gas Tax,” to spearhead a ballot question to overturn the law.
The “Tank” folks somewhat misleadingly try to tap into voter anger over tax waste or inept government, pointing, for example, to $50 million spent on Evergreen Solar, remodeling of the governor’s office, and the crime lab scandal. All are red herrings. The gas tax is by law dedicated to transportation improvements. Question 1 won’t do a whit to affect any of the abuses proponents cite.
For their part, those urging defeat trot out misinformation as well. They make a persuasive case about the need to invest in transportation improvements. But they also say Question 1 will be “taking away existing gas tax revenues.” It won’t. Despite its name, the “Tank the Gas Tax” folks actually aren’t tanking the tax at all, nor are they even rolling back the 3-cent increase. All they seek to do is prevent it from automatically going up.
There’s a logic to indexing a tax to inflation. The costs of roadwork rise each year, and it seems sensible to just have the resources available keep pace. Of course, one could make the same argument about everything, including household budgets. Alas, families don’t get their own automatic increases, meaning that for many higher gas taxes would eat into family budgets, forcing consumers to cut elsewhere. This is not an insignificant problem: The compounding effect of annual inflation increases can prove quite large. If automatic indexing had been in effect since 1991 (when it was 21 cents), for example, the gas tax today would stand at a whopping 36 cents.
It was tough enough for the Legislature in 2013 to increase the tax to 24 cents. If it had tried for 36 cents, I suspect, many pols this November would be fighting for their political lives.
That point underscores the seductiveness of indexing — at least to politicians. Elected officials can simply wash their hands of the annual increases, shrugging their shoulders and saying it’s not their fault. It’s a great way to shirk responsibility. Moreover, once in place, the increases are potentially locked in, reversed only at risk of throwing the state into default for future bonds it might issue.
All of which underscores, for taxpayers, the dangers. The English philosopher John Locke famously wrote in 1690, “The legislative cannot transfer the power of making laws to any other hands.” That’s because, in a representative government, those elected by the people need to remain accountable to the people. By allowing taxes to step up inexorably, based merely on a formula, the Legislature has delegated away its authority, largely removing from public view and public check something that I think almost everyone would acknowledge is a core function of government — the power to tax.
If Question 1 passes, by the way, there’s no reason the Legislature can’t meet annually to try to boost the gas tax by the consumer price index or any other amount. Granted, any proposed increases will be scrutinized and debated. But that’s the way it should be. Opponents of Question 1 fear that forcing politicians to vote on changes to the gas tax would make rises less likely, and they may well be right. But that’s less of a problem than saying voters no longer have a voice.
This column was first published in The Boston Globe on September 30, 2014.