Why Switching a Nation’s Vehicle Pool to Electric Models Will Make Gas Taxes Less Effective
09/05/23
“Why does switching a nation’s vehicle pool to electric models make its gas taxes less effective?”
A gas tax obtains funds from the sale of gasoline. This includes car owners purchasing fuel for their vehicles. But as more people switch from petroleum to electric cars, gas sales will drop, and the funds obtained by a gas tax will shrink. This is Why Switching a Nation’s Vehicle Pool to Electric Models Will Make Gas Taxes Less Effective. Policy makers will have to consider this in their budget projections and how to address it.
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