In the News Lucy Dadayan discusses states’ responses to rising gas prices
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“There is no clear winning in this environment.”
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As gas prices rise, states are considering relief measures like temporarily cutting fuel taxes or tapping into reserves. Lucy Dadayan, a tax policy expert at the Urban Institute, explains in a recent blog post that this volatility could have adverse effects down the road. Motor fuel taxes are often a key source of funding for transportation infrastructure, she wrote, and temporarily suspending them can lead to delays and budget reallocations. “At the end of the day, cost goes up and states need to have a balanced budget,” she said in an interview with Bloomberg

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Research and Evidence Tax and Income Supports
Expertise Taxes and the Economy
Tags State and local tax issues State and local finance
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