The Gas Tax

by Lloyd Bentsen NCPA, October 6, 2014

The American Petroleum Institute’s Gasoline Tax interactive map allows users to check out each state and the United States average state excise tax, other state taxes/fees, total state taxes/fees and total state and federal taxes.

Some of the states with the highest federal and state gasoline tax include:

• New York — 68.90 cents
• California — 68.18 cents
• Connecticut — 67.70 cents
• Hawaii — 66.85 cents

Some of the states with the lowest federal and state gasoline tax include:

• New Jersey — 32.90 cents
• South Carolina — 35.15 cents
• Oklahoma — 35.40 cents
• Virginia — 35.68 cents
• Missouri — 35.70 cents

The federal government adds 18.40 cents per gallon in each state. That federal tax is higher than the total state taxes for the states of New Jersey, South Carolina, Virginia, Oklahoma and Missouri.

High gasoline taxes from the states and federal government have a huge impact on gas prices at the pump. This is a heavy burden that the consumers are having to bear the brunt. The federal government and many states feel that the increased revenue from the gas tax is beneficial and that it will encourage less gasoline consumption and more alternative fuels/transportation. However, these excessive and usually unnecessary taxes directly hurt American consumers and damage the United States economy. This tax should be a really low flat tax across the nation creating a fairer and less burdensome tax, while still generating revenue for the states and/or federal government.

---30---