Oil, Gas, and Transportation Taxes

Gas taxes are typically used to fund infrastructure maintenance and new projects, but the share of state and local road spending that is covered by tolls, user fees, and taxes varies drastically. While politically unpopular, gas taxes, fees, and tolls are all relatively good applications of the benefit principle, the idea that taxpayers should benefit from the taxes and fees they pay. One of the primary issues, however, with both the federal and state gas tax is that they’re not indexed for inflation. As time goes on and inflation increases, the nominal value of the gas tax decreases, leaving states with budget shortfalls and unfunded infrastructure. States should attempt to fund infrastructure through user taxes and fees as much as possible, internalizing the costs associated with using the state’s transportation systems.

Related Articles

Links: Russian Tax Havens and Taxing Hybrid Cars

June 11, 2013

Happy Birthday to the Federal Gasoline Tax

June 6, 2013

The Oil Industry’s Tax Burden and Another Attempt to Increase it

April 8, 2013

McDonnell Modifies Virginia’s New Transportation Taxes by Expanding Their Scope, Sort Of

March 27, 2013

State Gasoline Tax Rates, 2009-2013

March 21, 2013

Facts & Figures 2013: How Does Your State Compare?

March 18, 2013

Selected Federal Rates, 2012 – 2013

March 14, 2013

Virginia Legislators Approve Increases in Sales Tax, Car Tax, Regional Taxes

February 25, 2013

Bowles Simpson Call for More Taxes, More Growth

February 20, 2013

Crunch Time for Virginia Transportation Funding Plan

February 11, 2013

Virginia House Passes Modified Version of Governor McDonnell’s Transportation Plan

February 6, 2013

State/Local Road Spending Covered by User Fees & User Taxes (Categories Separated Out)

January 22, 2013

Weekly Map: State Gasoline Tax Rates

January 22, 2013

A Response to Randal O’Toole on Road Funding

January 18, 2013

Road Spending by State Funded by User Taxes and Fees, Including Federal Gas Tax Revenues

January 17, 2013

New Report: Gasoline Taxes and Tolls Pay for Only a Fraction of Road Spending

January 17, 2013

Gasoline Taxes and Tolls Pay for Only a Third of State & Local Road Spending

January 17, 2013

Massachusetts Considering Income Tax Increase, New Transportation Revenue

January 17, 2013

VA Democrats Don’t Like McDonnell’s Transportation Plan, Offer Something Strikingly Similar

January 16, 2013

Monday Map: State Diesel Tax Rates, 2013

January 14, 2013