Billions of dollars that normally would be fed into the regional economy would be lost due to TCI’s regressive tax. An analysis from the Beacon Hill Institute (BHI), propose motor fuel prices in Massachusetts could increase by 25 cents per gallon, while diesel prices could increase by 52 cents per gallon. These steep increases would occur automatically each year. It would put a strain on the country’s economic recovery when a significant increase in revenue is actually needed. The steeper the price at the pump means less money for food, rent, mortgages, and utilities. The bottom line… Small businesses and consumers, already struggling to meet ends meet, will suffer the most.
The Transportation & Climate Initiative (TCI) is a regional collaboration of 12 Northeast and Mid-Atlantic states and the District of Columbia that seeks to reduce carbon emissions from the transportation sector. Of the states targeted to participate, many have either said they will not be part of TCI or are undecided because of the prospect of a motor fuels tax increase. Experts project there will be up to a 17-cents-a-gallon increase in motor fuel taxes during its first year.
