The Option of an Oil Tax to Fund Transportation and Infrastructure

Keith Crane, Nicholas Burger, Martin Wachs

The Option of an Oil Tax to Fund Transportation and Infrastructure
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The Option of an Oil Tax to Fund Transportation and Infrastructure

Keith Crane, Nicholas Burger, Martin Wachs

Federal spending on surface-transportation infrastructure outpaces federal taxes on gasoline and diesel fuel. Increasing fuel efficiency means that fuel-purchase expenditures have dropped, so real revenue generated from these taxes has declined. A percentage tax on crude oil and imported refined-petroleum products consumed in the United States could fund U.S. transportation infrastructure.

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