Robert M. La Follette School of Public Affairs

Cost-Benefit Analysis of Implementing a Sales Tax on Motor Fuels in Wisconsin

This cost-benefit analysis devises a mixed-tax alternative to Wisconsin's 32.9 cent excise tax on motor fuel. The authors compare their alternative to the current tax and to three variations on the current policy that take inflation and sudden price changes into account. Changing from the status quo of 32.9 cents per gallon to the mixed-tax alternative could yield Wisconsin an additional $1.7 billion in total revenue from 2012 to 2020, if price shocks are considered.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2011-004
  • Author(s): Kieran Coe, Adam Hartung, Jennifer Russ, Adam Smith, and Peter Whalen