Quote: But if this was going to (noticeably) improve roads and public transportation I would be happy to pay it.
I totally agree. I would never advocate a tax increase unless I readily saw an improvement in my roads. Yes, it will take a lot of time, but I want to see some action.
Quote: Yes an additioal gas tax would hit the shipping industry (USPS, Fexex, UPS, other shippers) and they will pass it on to consumers in the form of higher prices (as will stores) so I think this would lead to people buying things from closer to home instead of getting things that have been shipped from across the contry so I am not sure if this would be good or bad.
Well, those companies are exempt from many of the same taxes that you and I pay -- for example my company pays ~0.69021 per gallon, obviously much cheaper than you find diesel for on the street because the taxes are lower (and yes, we negotiate rates down to that fraction). But while these companies are expempt from many of the same taxes, they are still hit hard when gas prices rise.
For companies like my own, ever 1 cent increase in gas price is $17 million straight off the bottom line.
Gas prices will rise as demand rises. Demand will continue to rise unless you provide people will alternatives. If you don't slow demand, gas prices will rise causing (as you said) the price of everything we buy to rise right along with them. For small, cheap items transportation cost can be the majority of what you're paying for.
