Mobilizing the Region
Issue 276 July 3, 2000


Would a Gas Tax Cut Help New York ?


Last week, U.S. Senate candidate Hillary Clinton displayed a deftness on transportation funding issues that eluded her opponent, Congressman Rick Lazio. Lazio called for suspension of the 18.3-cent federal gasoline tax because of high gas prices, and suggested permanently eliminating the 4.3-cent increment enacted early in President Bill Clinton's administration. But Ms. Clinton pointed out that the federal gas tax is one of the few federal revenue sources that pays NY State back more than it contributes, and that the state would lose millions for transportation construction projects (the Lazio campaign's web site in fact lists LIRR and road projects Rep. Lazio secured federal funding for).

Clinton said NY's federal gas tax surplus was about $177 million per year. NY State has the lowest per capita driving rate in the country. Fewer than 50% of NYC households own automobiles, and the city relies on constant capital investment in mass transit to keep things moving. That didn't stop Mayor Giuliani from chiming in on Lazio's side in favor of gas tax reduction.


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