The Gas Tax Isn’t Regressive, Part Three

(at least, not regressive across the spectrum) – as I’ve argued here and here, the gas tax doesn’t hit the poor that hard; it mostly hits the exurban parts of the middle class and leaves the rich alone. From my original article on the subject:

The supposed regressive nature of the gas tax is a fallacy – in fact, poor people spend far less proportionally on gasoline than do the upper-middle-class.
The gas tax isn’t purely progressive; though; the very rich actually spend less proportionally than do the upper-middle-class, due to their tendency to be either in the few healthy downtowns, or less need to drive overall.

Here’s another link I found today which asserts the same:


“A subsidy to new vehicles would be regressive. A tax on
gasoline is not regressive across the lowest incomes but is regressive from middle to high
incomes.”

Note that the internet is replete with sites which say that the gas tax is regressive, but the only articles or studies which actually include any supporting arguments are the few that claim that it isn’t regressive. This leads me to believe that the gas tax ISN’T regressive, for the reasons previously discussed, and that the ‘conventional wisdom’ is wrong here.

This is timely because of a current thread on Environmental Economics on this very subject. Amazingly, I’ve now provided THREE links which are credible and contain supporting evidence for the claim that the gas tax isn’t regressive across-the-board; for the most part blind assertion is still the only support for the ‘regressive’ position. Moral: Conventional Wisdom is hard to fight, even when it’s wrong.

This Is Why We Need A Federal Government

For all the Grover “drown it in a bathtub” Norquists of the world; for all the self-identified libertarians (except when it comes to paying to drive); for all the suburbanites who think they pay too much in taxes as they itemize their McMansion’s mortgage deductions;

These last few days show clearly why we have, and need, a Federal Government. Local and state resources are clearly not enough, and the Feds are failing to do their job. Draw whatever conclusion you will, but Norquist deserves special scorn.