Somebody pinch me. Is the Calgary Chamber of Commerce serious about imposing yet another fuel tax on the fair city's residents You might expect this kind of proposal from those promoting so-called "social justice" or environmental activism, but this is the Chamber of Commerce. Aren't they supposed to be in favor of lowering, not increasing, the cost of business in the city

The Chamber's argument for a new gas tax goes something like this: Calgarians fork over approximately $200 million to the province in fuel taxes, but only 10 percent of that comes back to the city in infrastructure funding. This is obviously unfair. Ergo, the province should either return more of that money -- say, 50 percent (why or how the Chamber settled on that particular figure is not altogether clear) - or the city should introduce a gas levy of its own.

Now there is no doubt that Calgary could use some more infrastructure spending. Anyone who's driven through rush-hour traffic knows that. But what else is new It's always been a growing city. It's needed more infrastructure funding every year since incorporation. The question is, do Calgarians really need a new tax to keep up.

The answer is an emphatic no. Yes the city's population is growing, requiring more services, but so is the tax base. More people coming in means more expenditures, but also a corresponding increase in offsetting revenues. The City also needs to take another look at how it spends the tax dollars it currently consumes. A reallocation of expenditures from questionable projects like the Telus convention centre to roads, for example, might ease the city's cash crunch.

But let's say for a moment that the city just can't cope - that the crisis has reached epic proportions and a new tax is the only answer. For consumers that would mean a fourth tax on gasoline. Calgarians are already paying a 10 cent/litre federal excise tax and a 9 cent/litre provincial tax. The GST imposes a 7% levy on the total pump price creating a tax on tax. Adding the proposed municipal tax at the rumored 4 cent/litre would bump the tax component of the total pump price up to an incredible 54 percent. Calgarians would be spending well over half of their gas money on tax.

Boy, that oughta be good for the economy. I can just envision all those truckers and export manufactures beating down the doors of the banks looking for financing to

expand their businesses. A new gas tax would dampen investment and decrease competitiveness (especially with the U.S. - as if it wasn't low enough already), pure and simple.

Add to all of this the uncertainty that a municipal gas tax would actually be dedicated to road repair and construction and the Chamber's argument falls flat on its proverbial face. If the federal and provincial governments are any gauge to go by, gas taxes are rarely spent on roads. The feds spend a scant 5 percent of what's raised in excise tax on roads and, depending on what study you choose to look at, the province comes in at between 70 and 90 percent. There's no guarantee that a new municipal gas tax wouldn't end up financing various other causes deemed worthy by Calgary's council.

You know something has gone terribly wrong when those who should be driving to lower taxes propose to have them raised. The Chamber should give its collective head a shake and rescind its new gas tax policy. It owes that much to Alberta taxpayers.