KNOXVILLE (WATE) – A University of Tennessee researcher is offering some analysis on the options for paying for better roads in Tennessee.
Gov. Bill Haslam’s version would find funding by increasing the gas tax while lowering grocery and business taxes. A competing plan backed by some state lawmakers sets aside a portion of sales tax money for road improvements.
New analysis from the UT Boyd Center for Business and Economic Research finds that the two would have similar impacts on the broader state economy. It finds higher gas prices would only have a minimal impact when it comes to eroding the savings from lower taxes on groceries.
The research suggests a higher gas tax would shift more of the burden from lower income to higher income households.
More online: Read the full report [PDF]