![externality definition externality economics negative externalities like social costs Alcohol while how is a topic for Excise Tax Reforms federal gas tax holiday proposal for suspending the gas tax federal gas tax suspension gas tax holiday highway trust fund infrastructure funding](https://taxfoundation.org/wp-content/uploads/2022/02/suspending-the-gas-tax-federal-gas-tax-gas-tax-holiday-highway-trust-fund-infrastructure1-300x259.jpg)
All Related Articles
![externality definition externality economics negative externalities like social costs Alcohol while how is a topic for Excise Tax Reforms federal gas tax holiday proposal for suspending the gas tax federal gas tax suspension gas tax holiday highway trust fund infrastructure funding](https://taxfoundation.org/wp-content/uploads/2022/02/suspending-the-gas-tax-federal-gas-tax-gas-tax-holiday-highway-trust-fund-infrastructure1-300x259.jpg)
![2022 gas taxes in Europe Compare fuel tax rates and EU gas tax Europe map EU fuel excise duty](https://taxfoundation.org/wp-content/uploads/2022/07/Gas-Taxes-in-Europe-2022-fuel-tax-rates-and-fuel-excise-duty-295x300.png)
Gas Taxes in Europe
The Netherlands has the highest gas tax in the European Union, at €0.82 per liter ($3.69 per gallon). Italy applies the second highest rate at €0.73 per liter ($3.26 per gallon), followed by Finland at €0.72 per liter ($3.24 per gallon).
4 min read![State Tax Changes Taking Effect July 1, 2022](https://taxfoundation.org/wp-content/uploads/2022/06/State-Tax-Changes-Taking-Effect-July-1-2022-e1656086512705-300x169.jpeg)
State Tax Changes Taking Effect July 1, 2022
Although the majority of state tax changes take effect at the start of the calendar year, some are implemented at the beginning of the fiscal year. Fourteen states have notable tax changes taking effect on July 1.
7 min read![Carbon tax revenue recycling for border-adjusted carbon tax border adjustments Taxing Big Oil Profiteers Act Wyden excess profits tax oil and gas companies Carbon Tax definition, Carbon Emissions, CO2 Emissions, Global Temperatures, Climate Change, AOC, Ocasio-Cortez, Green New Deal, energy, environomental, payroll tax cut](https://taxfoundation.org/wp-content/uploads/2019/11/carbon-tax-crop-e1572984169767-300x195.jpeg)
Windfall Profits Taxes?
Oil prices have skyrocketed, posing a new risk to the post-pandemic recovery. Feeling the pressure to respond, policymakers have proposed everything from gas tax holidays, tapping into strategic reserves, and even rebate cards. One idea that has crawled back from the dead: “Windfall Profits Taxes.” This idea is seemingly simple: legislation targeted at the “excess” profits of oil companies. However, as with anything in tax policy, the reality is much more complicated.
![gas tax definition windfall profits tax oil and gas profits oil company profits windfall tax](https://taxfoundation.org/wp-content/uploads/2022/03/gas-station-gas-333-300x192.jpg)
![gas tax definition windfall profits tax oil and gas profits oil company profits windfall tax](https://taxfoundation.org/wp-content/uploads/2022/03/gas-station-gas-333-300x192.jpg)
Windfall Profits Tax Wrong for American Energy
As oil prices skyrocket, a windfall profits tax targeted at oil company profits could punish domestic production and increase reliance on imports.
3 min read![Florida gas tax holiday proposal gas tax suspension gas taxes, OECD gas taxes, gas tax, infrastructure, gas tax rates, federal gas tax](https://taxfoundation.org/wp-content/uploads/2019/05/gas-tax-kentucky-e1556812446327-300x169.jpg)
Florida Gas Tax Holiday Has Negligible Benefits—But Other States Seem Ready to Follow
A gas tax holiday may be good politics, but it’s unlikely to achieve its aims. There are far better ways to provide tax relief—short- or long-term—than an inefficient gas tax suspension.
4 min read![externality definition externality economics negative externalities like social costs Alcohol while how is a topic for Excise Tax Reforms federal gas tax holiday proposal for suspending the gas tax federal gas tax suspension gas tax holiday highway trust fund infrastructure funding](https://taxfoundation.org/wp-content/uploads/2022/02/suspending-the-gas-tax-federal-gas-tax-gas-tax-holiday-highway-trust-fund-infrastructure1-300x259.jpg)
A Gas Tax Holiday
The cost of gas is going up. To address this, policymakers have proposed suspending the gas tax. But could this actually make matters worse? We discuss why suspending the gas tax might be a mistake and what lawmakers could do to help with the rising costs of gas.
![externality definition externality economics negative externalities like social costs Alcohol while how is a topic for Excise Tax Reforms federal gas tax holiday proposal for suspending the gas tax federal gas tax suspension gas tax holiday highway trust fund infrastructure funding](https://taxfoundation.org/wp-content/uploads/2022/02/suspending-the-gas-tax-federal-gas-tax-gas-tax-holiday-highway-trust-fund-infrastructure1-300x259.jpg)
Federal Gas Tax Holiday? Suspending the Gas Tax Is a Mistake
If policymakers are looking to change the tax code to help fight inflation, they should pump the brakes on the federal gas tax holiday and instead consider structural reforms to raise the economy’s productive capacity in the long term.
4 min read![DeSantis gas tax relief DeSantis gas tax proposal Florida gas tax proposal Florida gas tax relief Florida online sales tax law bottled water tax on water extraction in Florida](https://taxfoundation.org/wp-content/uploads/2021/03/Florida-state-capitol-petert2-adobe1-e1614638833939-300x200.jpeg)
The Surprising Challenge of Too Much Tax Revenue—and Florida’s No-Gas-Tax Solution
Temporary tax relief measures, like refund checks or gas tax holidays, are not necessarily bad, and can be justified as ways to return excess revenues to taxpayers, but they often miss an opportunity to do better by taxpayers in the long run.
7 min read![Gas Taxes in Europe, 2021](https://taxfoundation.org/wp-content/uploads/2021/08/EU-Gas-2021-295x300.png)
Gas Taxes in Europe
3 min read![PA gas tax proposal seeks to phase out the PA gas tax (Pennsylvania gas tax) to fund PA highway funding. Learn more about the Gov. Tom Wolf gas tax proposal](https://taxfoundation.org/wp-content/uploads/2021/03/PA-gas-tax-proposal-seeks-to-phase-out-the-PA-gas-tax-Pennsylvania-gas-tax-to-fund-PA-highway-funding.-Learn-more-about-the-Gov.-Tom-Wolf-gas-tax-proposal-300x199.jpg)
Pennsylvania Considers the Equivalent of a $2 Per Gallon Gas Tax
A vehicle miles traveled (VMT) proposal gaining steam in Pennsylvania would be the equivalent of a state gas tax of more than $2 per gallon, and that’s not all the Commonwealth is considering.
7 min read![2021 gas tax rates and 2021 state gas tax rankings. How much is gas tax rates in each state. Which state has the highest gas tax rate.](https://taxfoundation.org/wp-content/uploads/2021/07/2021-gas-tax-rates-and-2021-state-gas-tax-rankings.-How-much-is-gas-tax-rates-in-each-state.-Which-state-has-the-highest-gas-tax-rate-300x258.png)
How High are Gas Taxes in Your State?
California pumps out the highest state gas tax rate of 66.98 cents per gallon, followed by Illinois (59.56 cpg), Pennsylvania (58.7 cpg), and New Jersey (50.7 cpg).
2 min read![User fees infrastructure spending consumption taxes](https://taxfoundation.org/wp-content/uploads/2021/06/user-fees-infrastructure-spending-consumption-taxes-300x199.jpg)
Broad-Based Taxes on Consumption and User Fees Are Efficient Ways to Raise Federal Revenue for Infrastructure
Rather than relying on damaging corporate tax hikes, policymakers should consider user fees and consumption taxes as options for financing new infrastructure to ensure that a compromise does not end up being a net negative for the U.S. economy.
2 min read![State infrastructure revenue and state infrastructure spending, How are roads funded in your state? Road funding by state, infrastructure spending by state, infrastructure revenue by state, gas taxes and tolls 2021](https://taxfoundation.org/wp-content/uploads/2021/04/State-infrastructure-revenue-and-state-infrastructure-spending-How-are-roads-funded-in-your-state-Road-funding-by-state-infrastructure-spending-by-state-300x254.png)
How Are Your State’s Roads Funded?
Traditionally, revenue dedicated to infrastructure spending has been raised through taxes on motor fuel, license fees, and tolls, but revenue from motor fuel has proven less effective over the last few decades.
4 min read![PA gas tax proposal seeks to phase out the PA gas tax (Pennsylvania gas tax) to fund PA highway funding. Learn more about the Gov. Tom Wolf gas tax proposal](https://taxfoundation.org/wp-content/uploads/2021/03/PA-gas-tax-proposal-seeks-to-phase-out-the-PA-gas-tax-Pennsylvania-gas-tax-to-fund-PA-highway-funding.-Learn-more-about-the-Gov.-Tom-Wolf-gas-tax-proposal-300x199.jpg)
Will Pennsylvania Be the First State to Motor Past the Gas Tax?
In Pennsylvania, Gov. Tom Wolf (D) has proposed phasing out the gas tax as the main funding mechanism for the state’s highway fund, and he has established a commission to recommend options for replacing it with alternative revenue sources. In a statement, the governor called the current motor fuel tax burdensome, outdated, and unreliable.
5 min read![excise tax definition suspending the gas tax proposal Kentucky's gas tax road funding, Kentucky gas tax bill](https://taxfoundation.org/wp-content/uploads/2020/03/linkedin-In-Stream_Wide___gas-station-300x158.jpg)
Kentucky’s Century-Old Gas Tax Is Failing to Keep Up with Road Funding Needs
For the fourth year in a row, a comprehensive infrastructure funding reform bill has been introduced in Kentucky, with the centerpiece being a gas tax increase of 8.6 cents per gallon (cpg). Like many states, Kentucky faces a backlog of road maintenance and construction projects, and existing transportation taxes and user fees are failing to keep pace with funding needs.
4 min read![Vehicle miles traveled tax VMT tax, motor fuel tax, transportation funding, highway trust fund economic impact of increased infrastructure spending](https://taxfoundation.org/wp-content/uploads/2017/01/gas-tax-infrastructure-rental-car-highway-2-small-e1568149025428-300x197.jpeg)
Who Will Pay for the Roads? The Future of Transportation Taxes
What can the U.S. do to raise the revenue needed for infrastructure upkeep and accurately internalize the costs associated with road usage?
![environmental tax policies, environmental taxation](https://taxfoundation.org/wp-content/uploads/2020/09/1-highway-poland-environmental-taxation-300x200.jpg)
Countries Eye Environmental Taxation
A recent OECD report on 2020 tax reforms reveals an increase in the number of environmentally-related tax policies, including gas taxes, carbon taxes, and taxes on electricity consumption.
5 min read![Vehicle miles traveled tax VMT tax, motor fuel tax, transportation funding, highway trust fund economic impact of increased infrastructure spending](https://taxfoundation.org/wp-content/uploads/2017/01/gas-tax-infrastructure-rental-car-highway-2-small-e1568149025428-300x197.jpeg)
Who Will Pay for the Roads?
The highway trust fund is on track to run out of money by 2021, states are struggling to cover their transportation spending, and increased fuel economy, plus inflation, is chipping away at gas tax revenue year. How can Congress and state governments ensure they have the revenue necessary to fund our highways? One solution is the vehicle miles traveled (VMT) tax.
35 min read