Publication Detail
Tax Expenditures Related to the Production and Consumption of Motor Fuels and Motor Vehicles: Report #18 in the series: The Annualized Social Cost of Motor-Vehicle Use in the United States, based on 1990-1991 Data
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UCD-ITS-RR-96-03(18) Research Report Hydrogen Pathways Program |
Suggested Citation:
Delucchi, Mark A. and James J. Murphy (2004) Tax Expenditures Related to the Production and Consumption of Motor Fuels and Motor Vehicles: Report #18 in the series: The Annualized Social Cost of Motor-Vehicle Use in the United States, based on 1990-1991 Data. Institute of Transportation Studies, University of California, Davis, Research Report UCD-ITS-RR-96-03(18)
First we will present the theory, and explain why tax expenditures are not necessarily a social economic cost—that is, why they do not necessarily constitute a reduction in social welfare. Next we will review the literature, which builds up estimates of tax expenditures piecemeal, tax provision by tax provision. Then, we will offer an alternative way to estimate tax expenditures, based on aggregate corporate income-tax rates. We do this for 1991 and for the year 2000, the most recent year for which data are available. We also provide an estimate of tax expenditures related to transportation based on differences in sales tax rates.
Revised September 2006. Changes to some tables.