The numbers that get are getting thrown around for ‘fixing’ the Federal deficit are around 1 trillion dollars over ten years. A pretty simple solution would be to raise the gas tax to $0.40 per gallon, from it’s existing $0.184 per gallon. It would still keep the gas tax to one of the lowest in the world, yet raise over $500 billion in revenue.
For perspective, over the last year and a half I have paid, on average, $3.87 per gallon. That would raise my average gas price to $4.09 per gallon, a mere 5.5% increase. That’s nothing compared to the monthly fluctuations in gas prices, yet it was raise over $500 billion dollars in revenue over the next 10 years, using that we currently collect around $25 billion per year.
Sounds pretty simple to me.
One thought on “Reduce the deficit by raising the gas tax”
I’ve been in favor of a significant gas tax increase since the mid-seventies. I’d take it even higher.
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