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Wednesday, June 24
The Indiana Daily Student

Raise the gasoline tax

There is a proposal in the Indiana General Assembly to raise the gasoline tax by 10 cents over the next three years. The tax, when fully implemented, will generate $330 million per year. The money from this tax will go to build new roads and strengthen Indiana's existing infrastructure. The gasoline tax should be raised, not only to finance road repair and construction and reduce the budget deficit, but also to reduce Indiana's dependency on gasoline.\nIndiana's infrastructure is looking at a dismal future, because in 2003, the Crossroads program, bonds that provides the Indiana Department of Transportation (INDOT) with $200 million per year, is going to expire. Also, a study by a group at Purdue University has found that the state is going to need $200 million in addition, over the next decade, for the repairs and refurbishments of local roads. These two factors, coupled with Indiana's budget deficit, create the need to find additional funding for Indiana's infrastructure.\nDuring the '90s, Indiana underwent a 9.7 percent growth in population. Indiana has a progressively growing population and if Indiana wants to see its population continue to grow and lure new businesses to the area, it must provide quality infrastructure. The state is expecting a population influx and it must build new roads to handle increasing amounts of traffic.\n In order to build new roads that are necessary to lure new businesses to Indiana and support a growing population, repair existing infrastructure and modernize the local roads that are going to need refurbishment during the next decade, Indiana must raise money. Currently, Indiana is running at a deficit. There is no excess money that can be funneled to INDOT. Therefore, if Indiana does not want to take on debt, the state must raise taxes in order to generate this needed money.\nA gasoline tax that is used to generate funding for roads is an efficient way to allocate the expense of creating these new roads. Those who use the roads most often pay the most money. This makes sure that no one has to pay for something that they don't even use. The benefit of the roads goes to those who pay for it. If Indiana took out loans to pay for the new roads, everyone would have to pay for the roads, and the cost of the infrastructure would not be allocated efficiently. Also, debt would put Indiana in a worse financial situation than if the government raised the gasoline tax.\nAnother benefit Indiana receives because of an increase in gasoline tax is less dependence on gasoline. With the aftermath of Sept. 11 and the current Pakistani-Indian standoff reminding everyone how tumultuous the world can be, we must make strides to limit our dependence on oil from the Middle East.\nAn increase in some energy prices could send the economy back into the abyss it seems to be leaving. An increase in the gasoline tax will encourage people to limit the amount of oil they consume and reduce dependence on oil.\nThe necessity for new and better infrastructure in Indiana makes an increase in the gasoline tax the right move for the state.

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