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Representative David Schweikert - Vice Chairman

Federal Gasoline Tax Targeted For New Revenues

Republican Staff Commentary

Federal Gasoline Tax Targeted For New Revenues

Republican Staff Commentary

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Among the tax increases proposed by the National Commission on Fiscal Responsibility and Reform’s recent report was a 15 cent increase in the federal gasoline tax (an 82% increase from the current level of 18.4 cents for regular unleaded gasoline), to be implemented gradually between 2013 and 2015.  The gasoline tax is an easy target for additional revenues because it is concealed within the cost of gasoline and because the demand for gasoline is relatively inelastic (meaning individuals do not significantly alter their consumption in response to changes in price).  The JEC Republican staff commentary points out that while the gas tax may be obscure, its negative impact on consumer spending is readily apparent.

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