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Math in the News: Gasoline Excise Tax

Did you realize that you are paying taxes when you fill up your gas tank?

The price you pay per gallon of gasoline already includes the excise tax. An excise tax is the tax on the sale or production of a specific good, such as gasoline, cigarettes, and gambling. You can learn more about excise taxes at Math & YOU.

The excise tax on gasoline has been used for decades to pay for road repairs and construction. However, as detailed in the Wall Street Journal article¬†“The Gas Tax is Running Low. But What Should Replace It?”,¬†states are running out of funds to pay for such roadwork. There is simply not enough revenue generated by the gasoline excise tax to support the roadways.

To fill this monetary gap, alternatives to the excise tax are being explored. Some of the proposed solutions include taxing cars, taxing oil, taxing miles driven, or raising the gasoline excise tax.

Weigh in after reading the article – what do you view as the best option?

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