Federal Excise Tax on Tires: Where the Rubber Meets the Road

Talley, Louis A. ; Jackson, Pamela J.

Library of Congress. Congressional Research Service.

关键词: Taxation;    Excise tax;    Automobile tires;   

RP-ID  :  RL30302
RP-ID  :  RL30302_2005Oct06

美国|英语

来源: UNT Digital Library

【 摘 要 】

This report examines the history of the federal excise tax on tires. The excise tax on tires was first levied in 1918 mainly because of revenue needs brought about by World War I. The tax was reduced after the war, and then repealed in 1926. The levy was reintroduced during the Great Depression at a time when federal individual income tax revenues were plummeting, and was increased to help finance World War II. Today, the premise for the excise tax on tires is that heavier vehicles cause greater damage to both roadways and bridges, and that the excise tax on tires resembles a pricing mechanism that is a proxy for highway wear-and-tear charges.