Gas Taxes: Where Does the Money Go?

Transcript

Gas Taxes: Where Does the Money Go?

Civic Minute · Tue May 5, 2026

Hi, I'm Denise, and this is your civic minute.

Every gallon of gas you buy in Wisconsin

includes about 51 cents in taxes,

roughly 33 cents to the state,

18 to the federal government.

People grumble about it,

but here's what that money does.

It builds and maintains the roads you're driving on.

Wisconsin's gas tax is indexed to inflation.

The federal gas tax is not.

It's been 18.4 cents since 1993.

That's over 30 years with no adjustment

in today's dollars.

It's lost nearly half its purchasing power.

The highway trust fund has been running short for years,

and Congress keeps patching it with general tax revenue

rather than raising the gas tax,

because nobody wants to be the politician

who raised gas prices.

Meanwhile, the oil and gas industry

has received federal tax breaks and subsidies

for over a century.

The roads wear out.

The subsidies do not.

That's your civic minute.

Find more at civicmedia.us.