And one state can start a wave. For example, Virginia reformed its gas tax in 2013, making it easier for neighbors like Maryland and Pennsylvania to follow, says Carl Davis, senior policy analyst at the Institute on Taxation and Economic Policy. “States notice what other states are doing.” Iowa’s new law will help Smith’s case next door, he says. It also helps that the business community is strongly behind these state laws, as they are at a national level. And approaches like phasing in or indexing the tax are more politically palatable for the general public, easing the pain of one big hike.
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Mentioned Locations
Iowa, Maryland, Pennsylvania, Virginia