How Much Would A Gas Tax Raise?
We hear about the President’s proposal to raise $1.4-1.6 trillion in new taxes over a ten year period. That is a lot of money, however, what if we raised the gas tax. How much revenue would that raise over the same 10 year period. Right now we consume around 135 billion gallons of gasoline in a year and another 35 billion diesel gallons.
If we raised the federal tax rate for these fuels by a $1 per gallon we would raise about $1.7 trillion dollars over a 10 year period. The actual amount would be less due to certain exemptions and reduced usage with a higher tax but you can see this would raise more than what President Obama is proposing right now.
A 50 cent increase would raise almost a billon dollars over the same period.
I am not advocating this tax increase but it just points out how revenue we could raise from just one tax.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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