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Memo
Author: Commenter
Date: 10-05-2019 - 23:44
The U.S. combined gas tax rate is lower than rates in other industrialized countries. According to data from the Organisation for Co-operation and Economic Development (OECD), the average gas tax rate among the 36 advanced economies is $2.24 per gallon. In fact, the U.S.’s gas tax is the second lowest (Mexico is the only country without a gas tax) and has a rate 25 percent lower than that of the next highest country, Canada, which has a rate of $0.74 a gallon.
On top of excise taxes, all OECD countries levy their value-added tax (VAT) on gasoline consumption. In the United States, only a few states (California, Connecticut, Georgia, Illinois, Indiana, Michigan, and New York) levy an additional sales tax on gasoline purchases. This means that the difference between taxes paid on gasoline in the United States and other OECD countries is even larger than the data on just excise taxes implies.
Without data on what the gas tax revenue is used for across the OECD, it’s hard to make a direct comparison between the U.S. and other countries. For instance, the Netherlands, which has the highest gasoline excise tax in the OECD ($3.36 a gallon), may only use a small fraction of the revenue for roads. The rest may be used for other government spending. If this is the case, its gas tax doesn’t conform to the benefit principle as strictly as it does in the United States. In other words, the Netherlands’ gas tax is high not because the country spends more on roads but because it chooses to tax gas more.
For more see:
https://taxfoundation.org/oecd-gas-tax/
Oh, and VAT is 18% to 24% and is on the gas *and* the gas tax.
This isn't recent but gives you and idea:
Now you know why Europeans think we haven't a clue when it comes to real auto costs. They don't subsidize their streets and highways like we do. Most streets here are paid for out of property taxes and local bonds. Those are paid by everyone, even renters. Why even those on bicycles... or feet. :)
On top of excise taxes, all OECD countries levy their value-added tax (VAT) on gasoline consumption. In the United States, only a few states (California, Connecticut, Georgia, Illinois, Indiana, Michigan, and New York) levy an additional sales tax on gasoline purchases. This means that the difference between taxes paid on gasoline in the United States and other OECD countries is even larger than the data on just excise taxes implies.
Without data on what the gas tax revenue is used for across the OECD, it’s hard to make a direct comparison between the U.S. and other countries. For instance, the Netherlands, which has the highest gasoline excise tax in the OECD ($3.36 a gallon), may only use a small fraction of the revenue for roads. The rest may be used for other government spending. If this is the case, its gas tax doesn’t conform to the benefit principle as strictly as it does in the United States. In other words, the Netherlands’ gas tax is high not because the country spends more on roads but because it chooses to tax gas more.
For more see:
https://taxfoundation.org/oecd-gas-tax/
Oh, and VAT is 18% to 24% and is on the gas *and* the gas tax.
This isn't recent but gives you and idea:
Now you know why Europeans think we haven't a clue when it comes to real auto costs. They don't subsidize their streets and highways like we do. Most streets here are paid for out of property taxes and local bonds. Those are paid by everyone, even renters. Why even those on bicycles... or feet. :)
