Are gas taxes in the US the lowest in the industrialized world?
Thursday, February 4, 2021
By Lisa Freedland
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YES
U.S. gasoline taxes are the lowest in the industrialized world, according to data from the Organization of Economic Cooperation and Development.
In 2019, the OECD calculated that the U.S. taxed gas at an average rate of 18.6%, based on the federal rate and additional varying state levies. Of the 36 OECD countries that tax fuel directly at the pump, the U.S. has the lowest rate. The rate ranges well over 60% in much of Europe and is 32% in Canada.
In the U.S., the federal rate has not increased since 1993. At least 31 states have raised their taxes since 2013. North Dakota is considering its first boost since 2005. “We have roads that are crumbling,” says a Republican legislator advocating the boost.
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Sources
Organization for Economic Cooperation and Development Organization for Economic Cooperation and Development: Consumption tax trends 2020
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