Tag Archives: James Pethokoukis

Funding the Highway Trust Fund is not a Binary Choice

SIN taxes (a form of a Pigou Tax) are used to discourage the consumption of a good–think pollution.  In theory, the taxes are imposed to pay for the negative externalities caused by consumption of that good (damage to third-party property owners in the case of pollution).  The revenues are costs are in equilibrium because the […]

Gasoline Taxes and Infrastructure Spending

AS reported by the AP, and published in the PPH, Sens. Chris Murphy (D-Min) and Bob Corker (R-Ten) are proposing to raise gasoline taxes by 12 cents and subsequently indexing it to inflation, offsetting that increase with tax cuts elsewhere.  The move would help keep the Highway Trust Fund solvent, and increase the gas tax […]