The Federal excise tax on gasoline was first pro-

T he Federal excise tax on gasoline is currently18.4 cents per gallon. This excise tax gener-ates over $20 billion per year in tax revenue. Revenues are currently 170 times the amount gener-ated in 1933, the first year of the Federal gasoline excise tax. Receipts from this tax are the major source of revenue for the Highway Account and the Mass Transit Account, which together make up the Highway Trust Fund. These taxes are used as a type of user fee. However, in recent years, the gasoline excise tax and the tax on other motor fuels have been used for additional purposes, for example, to reduce the Federal Budget deficit. Origin