Perception of Gasoline Taxes and Driver Cost: Implications for Highway Finance

Abstract

This research compares the actual magnitude of fuel taxes to the perceptions of these amounts. The issue is whether misperceptions about fuel taxes are contributing to voter perspectives about transportation finance and investment issues. A survey of likely Michigan voters shows that taxpayers greatly overestimate the amount they pay in fuel taxes. Half of the respondents (voters) overestimate the magnitude by at least a factor of five, and three-quarters overestimate the magnitude by at least a factor of three. Logistic regression analysis shows that voter (mis)perceptions regarding the magnitude of state fuel taxes do affect their views regarding highway revenue and investment proposals.

Keywords: Gas Tax, Perception, Highway Finance

JEL Classification: H7