In a previous article, I explained that the federal gasoline tax was a very crude way to fund highways, because there is only a tenuous link between gasoline consumption and highway usage. Privatization, not tax hikes, would be a much better solution to fund infrastructure. In this article, I'll point out another problem with hiking the federal gas tax: Once you factor in state-level taxes on gasoline, you realize the fuel is already taxed far too much. Indeed, for the highest tax states, the proposal to raise the federal tax by 25 cents would mean the combined taxes would amount to almost a dollar per gallon (indeed it would be $1.02 for Pennsylvania!).

---

Support Canada Free Press

---