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Tax rate design and support for mileage user-fees

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Abstract Road mileage user-fees (MUFs) remain an unpopular financing option to replace fuel taxes at the state level despite being viewed favorably by some policy experts and policymakers. We investigate… Click to show full abstract

Abstract Road mileage user-fees (MUFs) remain an unpopular financing option to replace fuel taxes at the state level despite being viewed favorably by some policy experts and policymakers. We investigate the extent to which tax-rate design can be used to boost support to the point where policymakers might feel comfortable moving ahead with replacing their fuel taxes with MUFs. Using data from four experimental surveys, we show that while tax-rate design can be used to increase public support for MUFs, the effect is likely too small to convince policymakers to adopt MUFs.

Keywords: support; rate design; tax rate

Journal Title: Transport Policy
Year Published: 2020

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