THE SECULAR INCOME ELASTICITY AND REVENUE STABILITY OF MOTOR FUEL TAXES

THE EVIDENCE SUGGESTS THAT STATE MOTOR FUEL TAXES HAVE MET LITTLE RESISTANCE IN ADOPTION AND ARE NOW A FIRMLY ESTABLISHED PART OF PUBLIC POLICY. THERE ARE SEVERAL HYPOTHESES OFFERED TO EXPLAIN THE GENERAL ACCEPTANCE OF THESE TAXES WHICH ARE APPLIED AT INCREASING RATES IN ALL THE STATES AND THE DISTRICT OF COLUMBIA. THE HYPOTHESES ARE: EASE OF ADMINISTRATION, CONVENIENCE OF PAYMENT, LOW COST OF COLLECTION, A GOOD MEASURE OF THE BENEFITS ENJOYED FROM USE OF HIGHWAYS, AND A STABLE FORM OF REVENUE. THE AUTHOR POINTS OUT THAT NO ONE HAS EVER QUESTIONED THE FIRST THREE HYPOTHESES NOR WORKED OUT A WAY TO INVESTIGATE THEM. WHAT EVIDENCE THERE IS, SEEMS TO SUPPORT THIS. HOWEVER, THERE IS AN INCREASING CONCENSUS THAT THE TAX DOES NOT MEET THE BENEFIT THEORY OF TAXATION. THIS IS DISCUSSED AT SOME LENGTH. THE CONCLUSION IS REACHED THAT PERHAPS BOTH THE LAST TWO HYPOTHESES ARE INCORRECT AND THE CONCLUSION IS DRAWN THAT REVENUE PRODUCTIVITY, RATHER THAN REVENUE STABILITY, IS AN ESSENTIAL CHARACTERISTIC OF MOTOR FUEL TAXES. /AUTHOR/

  • Supplemental Notes:
    • Vol 18, No 4, PP 380-387
  • Corporate Authors:

    N/A

    ,   United States 
  • Authors:
    • DAVIES, D G
  • Publication Date: 1965-12

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Filing Info

  • Accession Number: 00200948
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 28 2004 6:01PM