Is it time to increase the tax on gasoline?

The US government has not increased the federal gasoline tax since 1993 which will surprise many people. The 18.4c rate per gallon rate today would be 28.97c per gallon (+57%) at the end of 2012 if it had been increased in line with inflation since 1993.

While there are other factors to consider such as gasoline related taxes by individual states, is it time to increase the federal gasoline tax and encourage more people to move to electric.

Bear in mind any tax applied to gas or oil will be passed on to E.V.'s in time. We are already seeing that. The gov won’t stand by and watch it’s revenues decrease as electric takes over. Once a tax is in place it will never do anything other than grow.

We pay over 96 cents in tax per gallon in New York.
Please… no more taxes. We are taxed to death here in NY.

Hi Sugarmaker

I totally agree with your comments on tax - once the door has opened for a new tax on EVs it will never close and the tax will keep going up and up.

Governments around the world will not sit back and see oil tax income fall but on the flip side they cant afford to tax EVs too heavily in the early days otherwise they will kill the industry. Interesting balancing act on the way :slight_smile:

Mark

I don’t believe governments (local & federal) want anything to do with electric transportation. They have all their eggs in the petroleum basket. Just look at California. At one time they were a pro-electric vehicle state… then big oil stepped in and squashed that notion.

Hi LuvMyTJ

Do you think the oil companies are still pulling the political strings in the US behind the scenes?

Mark

[QUOTE=LuvMyTJ;15366]We pay over 96 cents in tax per gallon in New York.[/QUOTE]

:eek: That sucks!

I thought petrol/gasoline tax in the UK was bad but in some areas of the US it is a scandal!

I thought petrol/gasoline tax in the UK was bad but in some areas of the US it is a scandal!

What is the tax rate on gas in th U.K. now?

Hi Sugarmaker

The cost of a litre of petrol in the UK now stands at 132.9 pence which is made up of the following: –

Duty 57.95 pence

Product 47.8 pence

VAT 22.15 pence

Retailer/delivery 5 pence

The cost of a litre of diesel in the UK now stands at 137.9 pence the cost of which is broken down as follows: –

Duty 57.95 pence

Product 51.97 pence

VAT 22.98 pence

Retailer/delivery 5 pence

Therefore in total the tax charge on a litre of petrol in the UK is 80.1 pence which equates to 60% and the situation for diesel is total tax per litre of 80.93 pence which equates to a 58.7% tax charge.

These figures were provided courtesy of the petrolprices.com website.

IT’S A CATCH 22 – the gov encourages electric for the envioment . fewer gallons sold reduces amount of taxes collected. depending on what the tax is used for, taxes should be “used for direct uses” of vehicles. Govt should not be in business. Lets not TAX, just because the govt. can.