EDITORIAL: Oregon voters decisive about gas-tax increase

May 22-The demise of a proposed gas tax in Oregon was predictable. With gas prices having ballooned in recent months and with affordability being a major issue this campaign season, voters are more reluctant than usual to approve new taxes.

But the level of voter disapproval and the resulting questions about transportation funding should resonate with lawmakers in Washington, in other states and at the federal level.

Democrats in the Oregon Legislature this year approved a gas-tax increase of 6 cents a gallon, along with increases to vehicle licensing fees; the aim was to fund road improvements and plug a hole in the state's transportation budget. Republicans responded with a referendum campaign that placed the issue on the ballot.

On Tuesday, Oregon voters resoundingly rejected those increases; according to the first night of election results, 83 percent of voters said "no" to Measure 120. Republican state Sen. Bruce Starr told The Associated Press that he was "not surprised at all that Oregonians have rejected a completely unpopular tax increase. Oregon voters will not be ignored. Oregon taxpayers will not be ignored."

There are several lessons to be taken from the result.

One is that timing is everything in politics. Last year, Washington lawmakers approved an increase to the state gas tax and added an annual increase indexed to inflation; on July 1, the tax will increase 2 percent - approximately 1 cent a gallon.

The need for sustainable transportation funding is obvious; according to the Federal Highway Administration, Washington ranks 43rd among the states in road quality. That assessment represents inefficiency; the state ranks high in spending per lane mile and has the third-highest state gas tax, at 59 cents per gallon. But the Oregon vote is a clear message about the public's feelings regarding tax increases at this time.

Another lesson is that gas taxes are an increasingly unreliable method for funding road maintenance and construction. Owners of electric vehicles do not make gas purchases that contribute to funding, although they do pay additional annual fees; and fuel-efficient vehicles have reduced the rate of gas purchases.

Meanwhile, despite its comparatively high level, Washington's gas tax has not kept up with inflation. The tax has increased 19 percent since 2017; inflation, which impacts the cost of labor and materials for construction, has gone up 36 percent since then.

On top of that, the federal gas tax of 18.4 cents a gallon has not been increased since 1993. Revenue of $1 million in 1993 is worth $434,000 in today's dollars.

Those taxes contribute to the number that matters most to consumers: what they pay at the pump. Since President Donald Trump launched an attack on Iran at the beginning of March and upended global oil markets, the average price of gas in the United States has increased 86 cents per gallon; in Washington, according to AAA, the average price on Monday was $5.79 per gallon.

Trump's defenders point out that there also was a spike in gas prices during the Biden administration. But that was the result of supply-chain issues and a global pandemic; the recent increase is solely attributable to Trump's choice to launch a war. When asked whether rising prices have impacted his thinking, Trump said: "Not even a little bit. I don't think about Americans' financial situation. I don't think about anybody."

All of this adds up to vehement public opinion regarding the price of fuel. The ultimate kitchen-table issue, it turns out, can be found at the gas pump.

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