Consider the fact that in 1998, when the CTF began holding “Gas Tax Honesty Day,” our annual gas tax awareness event, the federal government only spent 26 per cent of fuel tax revenue on “infrastructure” projects. For 2009 that figure has ballooned to 146 per cent. Clearly, things have moved in the right direction.

 

Unfortunately, given the way federal expenditures are reported, it’s difficult to know exactly how much progress has been made. You see, as a spending category, “infrastructure” represents more than just roads. For example, a couple years ago, fuel tax dollars were actually spent on bocce ball courts and a canoe museum which were also categorized as “infrastructure.” Although it is difficult to say for certain that 100 per cent of federal fuel tax dollars are being spent on roads this year, we’ve come a long way from where we were in 1998.

 

One thing is for certain, the 150,000 gas tax petition signatures that the CTF has delivered to Ottawa on the issue played a big part in shifting federal funding.

 

But going forward, there is more work to be done. To begin, the Harper government needs to take a page out of the Doer government’s play book and pass a “Gas Tax Accountability Act.”

 

In 2004, the Doer government passed such an act and now must publish annually both the amount collected in fuel taxes and the amount spent on road construction and repair. Looking at the last four years, the Doer government has averaged 122 per cent - meaning they are spending even more on roads than they collect in fuel taxes. On this issue, the Doer gang deserves two thumbs up.

 

In addition to simply reporting how fuel taxes are raised and spent, the Canadian Taxpayers Federation's version of the “Gas Tax Accountability Act” goes one step further. If passed by the House of Commons, it would require the federal government to spend at least 100 per cent of fuel tax revenue on roads. This would establish gas taxes as a true user fee, not simply a cash grab.

 

Further, the federal government's dirty little secret is that the GST is actually applied after other gas taxes are collected. It is in fact a ‘tax-on-a-tax.’ To rectify this problem, Prime Minister Harper should heed some advice he gave to former Prime Minister Paul Martin through a 2004 news release: 

 

“The fastest and easiest way to give Canadians relief at the pump is for the federal government to stop charging GST on top of gasoline excise taxes. It’s time to axe the tax on the tax.”

 

By reducing the GST from 7 per cent to 5 per cent and increasing roadway spending, Prime Minister Harper has taken us from a quarter of a tank to half a tank. Now all we need is for him to finish the job by honouring his gas tax commitment and by passing a Gas Tax Accountability Act.