The State of Pennsylvania is considering joining the Transportation & Climate Initiative. A program designed to help reduce carbon impacts from transportation. We at American Energy Supply commend the desire to reduce carbon, however we strongly believe the TCI is bad for the residents of the Commonwealth of Pennsylvania. TCI’s approach is not a practical solution.
Why Is TCI Bad for PA?
It will increase fuel taxes! The initiative uses a cap on carbon program and pricing mechanism which will raise Pennsylvania fuel taxes. With the second highest gas tax in the Nation, we’re already heavily taxed and increasing this tax further will take billions of dollars out of the local and state economy.
These additional fuel taxes will disproportionately impact lower income residents and small business by putting an undue economic strain on them. Given the current economic climate due to covid-19, these communities cannot afford to take another hit.
Additionally, the reinvestment programs of said tax dollars will include projects like building a network of electric vehicle charging infrastructure. Such a project would be unhelpful to the low income and even middle income families in PA where electric vehicles are out of reach within typical family budgets. This program essentially forces families who may not be able to afford electric vehicles to subsidize the cost of infrastructure for those who can. Improvements should be directly beneficial to all classes, not just the wealthy.
How much of an increase?
The total amount of tax increase is estimated to be 17 and 31 cents, which will equate to $3.9 billion dollars annually being sapped from the commonwealth’s economy (based on convenience and gas station sales.)
We know the businesses and families of Pennsylvania can’t afford this loss.
Such an across the board approach to financing through taxation, will undoubtedly increase the wealth inequality in Pennsylvania and undermine the goals of the commonwealth to uplift and support our communities and residents.
Want to Learn More?
Visit https://taxfoundation.org/pennsylvania-considers-equivalent-2-per-gallon-gas-tax/www.nonewpagastax.com to learn more about the impact TCI will have on Pennsylvania and its residents. You can also voice your concerns on TCI’s website or directly to our governor.