ITEP Report Calls for Modernizing Federal Fuel Tax

A new report from the Institute on Taxation and Economic Policy (ITEP) offers specific policy recommendations for modernizing the federal fuel tax, which hasn't been raised in 20 years.
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A new report from the Institute on Taxation and Economic Policy (ITEP) offers specific policy recommendations for modernizing the federal fuel tax, which hasn't been raised in 20 years. Among its findings, "A Federal Gas Tax for the Future" argues for increasing the tax rate to offset its recent decline; restructuring the tax so that its rate automatically rises each year with construction cost inflation and so that it also rises when vehicle fuel-efficiency improves; and implementing reforms to ensure that this restructuring does not lead to unnecessary volatility in fuel tax collections.

 

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