NCPA - National Center for Policy Analysis

Getting Rid of the Federal Gas Tax

February 6, 2015

Policymakers have renewed calls for a gas tax hike, but what about getting rid of the federal gas tax altogether? That's what Veronique de Rugy of the Mercatus Center suggests. While the federal gas tax is struggling to fund highway projects, she says getting the federal government out of the gas tax business would be a better way to deal with infrastructure spending.

De Rugy says it "makes little sense" that the current tax structure taxes people at the pump and sends the money to the federal government, then the federal government sends that money to the states. Instead, she says states should be the only ones levying gas taxes to deal with problems within their borders. Moreover, she says states that need more revenue for road funding could experiment with better ways to raise money -- ones that call for competition and innovation. And without the federal gas tax in the way, state taxpayers might be more willing to agree to new gas taxes to fund needed projects in their states.

Source: Veronique de Rugy, "The Federal Gasoline Tax Should Be Abolished, Not Increased," Mercatus Center, February 2, 2015.


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