2.3 Federal Gasoline and Diesel Tax Variables
The TRENDS Model also allows you to assess the estimated impact of an increase in federal fuel taxes. This section of the model works identically to the state fuel tax section.
As you can see in the screen shot below, the first question you will be asked relates to the federal gasoline tax. The current federal gasoline tax rate is 20 cents per gallon. The TRENDS Model asks if you would like to increase the federal gasoline tax rate. The default answer is “No.” (see below)
As in the state fuel tax section, if you change the answer to “Yes”, TRENDS will ask the amount of the increase and the fiscal year in which you would like the increase to become effective. For cent values less than 1, you will need to enter a leading zero first. For example, 1/10th of a cent increase would need to be typed as 0.1.
As with the state motor fuels taxes, you also have the option to increase the federal gasoline tax a second time. The same procedure is followed for the federal diesel fuel tax.
The last line of this section asks “Total federal reimbursement as a percent of federal fuel tax revenue.” This space allows you to enter the amount that will be reimbursed to you from total federal fuel tax revenue collected. The default answer is 85 percent. For cent values less than 1, you will need to enter a leading 0 first. For example, 1/10th of a cent increase would need to be typed as 0.1. (see below)
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