Analysis Finds Tying Annual Increases in Gas Tax to Inflation Would Have Raised Signficant Revenue

As reported by the Washington Times, a recent analysis by the Institute on Taxation and Economic Policy has found that Maryland and Virginia have foregone millions of dollars in gas tax revenues by not tying annual increases in the gas tax to inflation.

The states, both of which are desperately trying to cobble together more money for transportation, had among the highest totals in the nation of unimposed gas-tax dollars, according to the D.C.-based Institute on Taxation and Economic Policy.

Maryland’s gas tax of 23.5 cents per gallon, in place since 1992, could have generated an additional $421 million per year in the past two decades if it had been tied to inflation, the analysis concluded.

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