With both federal and state government mulling gas tax hikes, Illinois residents could potentially see higher prices at the pump.
A report from Americans for Prosperity measured the cost of a proposed federal tax increase on motor fuel by state. If the federal increase were approved, Illinoisans would pay an additional $240 a year for gas on average. However, state lawmakers are also looking to fund infrastructure spending with a 19-cent per gallon state gas tax increase.
AFP Illinois director Andrew Nelms said the two potential increases would be a significant hike for Illinois drivers to absorb.
“These two tax increases in tandem would cost the average Illinois house $480 a year,” he said.
The cost would hit central and southern Illinoisans harder because people there tend to drive further distances.
“A gasoline tax is going to disproportionately impact those people,” Nelms said.
When gas taxes are increased, it creates a cascading increase in the cost of other goods and services that either require gas for the service to be performed or if the good needs to be transported to its final point of retail sale. Supporters see it as a powerful incentive to move away from fossil fuels as a means of transportation.
In addition to a state-by-state report, AFP will begin launching digital ads encouraging two Southwestern Illinois lawmakers, Reps. Rodney Davis and Mike Bost, both of whom sit on the Highway and Transit Subcommittee of the House Transportation and Infrastructure committee, to oppose any efforts to increase the gas tax and instead prioritize key reforms to improve the nation’s infrastructure, such as:
- Preserving federal infrastructure dollars for targeted construction projects of a national priority;
- Unleashing private investment in infrastructure assets;
- Returning power and responsibility to the states wherever possible;
- Overhauling the regulatory and permitting system to improve outcomes and efficiency; and
- Eliminating costly and unfair labor restrictions.
State lawmakers are touring Illinois talking about the need for infrastructure spending and raising taxes to pay for it. They’re in Elgin Monday.
Some information from the Illinois News Network.