Tuesday, April 29, 2008

Gas Tax Vacation Savings per person

The total cost to the Federal Government was estimated to be about $6.6 billion from 18.4 cents per gallon on 400 million gallons sold per day.

The per capita gasoline consumption per year varies from 215.3 gallons in Washington D.C to 615 gallons in Wyoming, for a US average of 464 gallons.

For the 100 day (rounded) holiday period, the savings work out to $11 to $31 with more than 95% of people saving less than $30.

Since this is a direct incentive to an individual, a small amount of $30 over 3 month period has no effect on the consumption. But due to its cumulative effect on the tax revenue has a big impact on infrastructure investment.

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