Massachusetts’ Report: Higher Gas Tax, Like Higher Transit Fares, Could Increase Inequality

While many sustainable transportation advocates champion higher gasoline taxes as a way to pay for transportation improvements, a new report from the Massachusetts Budget and Policy Center (MassBudget) warns that higher gasoline taxes will exacerbate the state’s growing income inequality – unless the state simultaneously passes other tax policies to benefit low-income families.

A 10-cent tax increase would cost, on average, 0.20 percent of income for the lowest-income households, and less than 0.001 percent of earnings for households from the highest 1 percent of incomes, according to MassBudget.