Energy Literacy Advocates (ELA) is a non-partisan, non-profit, public education organization working to improve the energy literacy of all sectors of our democracy.

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Energy Literacy Advocates (ELA) is a non-partisan, non-profit, public education and advocacy group dedicated to improving the energy literacy of all sectors of our democracy in order to empower a comprehensive national energy policy that is responsible and sustainable. Stay tuned for updated energy news!


Monday, November 16, 2009

Policy Roundtable - Contemplating a Gas Tax

The first week of November witnessed an unusual sight - automotive executives lining up behind environmentalists and conservationists to call for a tax on gasoline. But what really are the pros and cons of a gas tax, from both a policy and everyday perspective?

My blogs this week will take a brief look at some of the points in this issue.

First of all, be under no illusion - Americans already pay a gas tax at the pump. Currently, the federal tax on gasoline is 18.4 cents per gallon. After that, states assign a tax, which can range from 65.8 cents per gallon at the high end (California) to a low 26.4 in Alaska. The average state tax rate in the US is 47.3 cents per gallon. These funds are gathered for road maintenance and other items. To check your state's rate, click here.

Despite the taxes already paid, the US remains low in comparison to other countries in terms of taxes on gasoline. Proponents of hiking the US gas tax rate claim that raising the price of gasoline through taxation, rather than through market mechanisms, forces demand to more efficient vehicles earlier.

Want to check out an international study on this? Click here?

Tomorrow: a look at the theory of a gasoline tax and some number crunching from real examples.

posted by Amanda Voss at 8:15 PM

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