A Gax Tax Increase Is A Nonstarter, By Ronald D. Utt

A degree of contentiousness has always surrounded any increase in the gas tax, but the level of controversy has increased over the past few decades to where the issue is no longer openly discussed within federal policy circles. The federal excise tax on motor fuel dates to a 1932 tax bill enacted as part of an effort to reduce the deficit during the Great Depression. Originally set at a penny per gallon, the tax was increased to two cents in 1951 where it remained until 1956 when it was raised to three cents and dedicated to the new highway trust fund.


About Bill Reinhardt

Editor of Public Works Financing newsletter
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