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Jul 02

Gas taxes give travelers a break

Posted By
Jul 02, 2010 / 06:07
0

USA TODAY

When drivers hit the road in large numbers for the Fourth of July holiday, they will have something extra to celebrate — the lowest gasoline taxes since the early days of the automobile.

Holiday drivers will pay less than ever at the pump for upkeep of the nation’s roads — just $19 in gas taxes for every 1,000 miles driven, a USA TODAY analysis finds. That’s a new low in inflation-adjusted dollars, half what drivers paid in 1975.

Another measure of the trend: Americans spent just 46 cents on gas taxes for every $100 of income in the first quarter of 2010. That’s the lowest rate since the government began keeping track in 1929. By comparison, Americans spent $1.18 in 1970 on gas taxes out of every $100 earned.

Although the federal gas tax — 18.4 cents per gallon — hasn’t changed since 1993, tax collections are down because today’s vehicles go farther on a gallon of gas, cutting tax collections while increasing wear and tear on highways. Inflation since 1993 has eroded the value of the tax to maintain roads.

FULL STORY: http://www.usatoday.com/money/industries/energy/2010-07-01-gas-tax_N.htm

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