![Table 1: Summary of state tax rates in cents per mile for gasoline, diesel, and E85.](https://www.infrastructureusa.org/wp-content/uploads/2016/09/gas-taxes.jpg)
Indexing fuel taxes to inflation in addition to imposing a states’ sales tax increases revenue significantly but suffers from a continuous decline in the long-run due to increased fuel efficiency. Our results indicate that although a mileage fee is politically and technologically difficult to achieve, it avoids a declining tax revenue in the long-run.
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