Date: October 6, 2005
Creator: Talley, Louis A. & Jackson, Pamela J.
Description: This report examines the history of the federal excise tax on tires. The excise tax on tires was first levied in 1918 mainly because of revenue needs brought about by World War I. The tax was reduced after the war, and then repealed in 1926. The levy was reintroduced during the Great Depression at a time when federal individual income tax revenues were plummeting, and was increased to help finance World War II. Today, the premise for the excise tax on tires is that heavier vehicles cause greater damage to both roadways and bridges, and that the excise tax on tires resembles a pricing mechanism that is a proxy for highway wear-and-tear charges.
Contributing Partner: UNT Libraries Government Documents Department