The Atlantic City Lab: Even Doubled, America’s Gas Tax Would Be Low by World Standards
media mentionThe U.S. rate of 53 cents a gallon reflects the federal gas tax as well as the average state tax. Adding Carper’s 16 cents wouldn’t budge the U.S. position way back of the pack—nor would doubling the entire 53 cent average. As the numbers stand, lawmakers would have to raise the average gas tax at least eight-fold for Americans to pay the steepest rate in the world.
In that context, Carper’s plan seems like quite the bargain. A higher gas tax would help stabilize the Highway Trust Fund, which has staved off bankruptcy in recent years through a series of short-term funding patches and dubious transfers from the general taxpayer fund. And 34 cents is about what the gas tax would be today if it were indexed to inflation anyway, according to the Institute on Taxation and Economic Policy. The legislation even comes with a tax credit to reduce the hardship high fuel costs cause for the car-dependent middle-class.