Diesel Tax

Problem:

  • With the improvements in mpg and the creation of hybrids and/or electric cars we are losing tax revenue
  • There are roughly 19 states with lower unemployment than Texas and all of them have a higher diesel tax. The average for these 19 states is 24 cents
  • Five of the seven states without an individual income tax have a higher state gas tax than Texas. The average gas tax for these 5 states is 32 cents

Solutions:

  • Tie the current diesel tax of 20 cents to inflation (CPI-U)
  • Use a 24 cent diesel tax and tie it to inflation (CPI-U)
  • Use a 32 cent diesel tax and tie it to inflation (CPI-U)