Consumers and Hidden Taxes: The Per-Gallon Fuel Tax, A Special Kind of Hidden Tax

You may be asking, “How is a per-gallon fuel tax a hidden tax?”
You as a consumer are paying the per-gallon fuel tax with your purchase.  So are the businesses who must put fuel in their vehicles.  They are paying that same per-gallon fuel tax, and the cost of that per-gallon fuel tax is hidden inside of the prices they must charge.

Here’s another point to consider.  In recent months, I’ve read news reports about studies that have been done showing how the average American is driving fewer total miles each year, and how the average American is also driving a vehicle that gets more miles per gallon.

So let me just make up some simple numbers to show what those two reports are saying.

First, let’s pretend that about 10 years ago, the average American was driving 18,000 miles per year, and getting an average of 18 miles per gallon.  If you divide 18,000 by 18 you get 1,000 gallons of fuel purchased by the average American 10 years ago.

(Now please keep in mind that I’m making these numbers up to show a point as simply as I can.)

Next, let’s pretend that currently, the average American is now driving only 16,000 miles per year, and getting an average of 20 miles per gallon.  If you divide 16,000 by 20 you get 800 gallons of fuel purchased by the average American per year, currently.

That’s 200 gallons per year less being purchased by the average American, using my totally made up numbers.

Remember, the news reports showed that Americans, on average are driving fewer miles, so my made up numbers going from 18,000 per year to 16,000 per year is an example of that.

The news reports also showed that Americans are getting higher miles per gallon, so my made up numbers going from 18 miles per gallon to 20 miles per gallon is also an example of that.

So, driving fewer miles per year, and getting higher miles per gallon, means that Americans, on average are needing to buy fewer gallons of fuel to drive on and use the same roads.

Any per-gallon fuel tax being used as the only source, or even as the main source for funding the maintenance and repair of existing roads, or as the source for building new road and infrastructure projects, any such per-gallon fuel tax is going to produce fewer road work dollars unless the tax charged on each gallon of fuel keeps getting increased.

Here again, the most needy members of society are being hurt because they are also paying fuel taxes as part of putting gas in their “no so fuel efficient cars.”  Reports I have looked at show that the ‘number of households in the United States of America who are living on a very limited income are higher by several percentage points than the number of people who use public transportation.

I work in public transportation.  I know that a certain number of those who regularly ride public transportation aren’t among the poorest in society.  They have good paying jobs and are using public transportation to commute between work and home.

By ending any form of per-gallon fuel tax in place of a transparent tax added onto taxable consumer purchases (not including food and other basic necessities), the neediest members of society would be able to buy a few more gallons of fuel for their not-so-new vehicles, and the per-gallon (hidden) fuel tax that businesses are paying would no longer be included in the prices consumers pay.

Thank you for taking time to read and ponder my opinion on this topic.
An Opinion Article by Dave Kemper
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It has been said that: "One definition of insanity is to do the same thing, the same way, over and over and over again, each time expecting to achieve a different result."
Therefore, we must either CHANGE the way we live, or we bind our future to our past as if with CHAINS.
"I do not consider myself to be better than anyone else.  But I do believe in exercising my right to not stay stupid."

David W. Kemper, Author
© Copyright 2014 by David William Kemper.  All right reserved
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