Statement on Proposed Gas Tax Increase

October 30, 2019 Statement on Proposed Gas Tax Increase  Statement by Marie-Frances Rivera, Massachusetts Budget and Policy Center President, in response to discussions on increasing the gas tax:  With congested highways, antiquated public transit, and limited transit options outside of Greater Boston, the Legislature and business community are debating the merits of increasing the gas tax to modernize our state's transportation system. It is critically important to understand that not only would this increase hit low and middle income communities the hardest but it would draw on a source of transportation revenue that will likely decline over the long term. Our report, 14 Options for Raising Progressive Revenue, outlines a variety of fair and sustainable ways we can raise revenue, including raising corporate taxes. These options ask those who are benefiting most from economic growth to contribute a little more to help bring our transportation system into the 21st century. If policymakers decide to raise the gas tax, increasing and expanding worker tax credits, such as the Earned Income Tax Credit, can create a financial buffer for some who would be hardest hit by a gas tax increase. Interested in learning more about the pros and cons of higher gas taxes? Read our latest report here. The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 1 STATE STREET, SUITE 1250 BOSTON, MA 02109

Massachusetts Budget and Policy Center, 1 State Street, Suite 1250, Boston, MA 02109