Why do i pay the same tax for ethanol as for gasoline?

Question

I mean really,

Why is it that I have to pay taxes on a full gallon of gas when I am actually paying tax on 9/10ths a gallon of gas an 1/10th of a gallon of ethanol?

Shouldn't the tax be reduced by 1/10th as well on the full gallon because it has been diluted by the c**p ethanol?

Answer 1

It's a fuel tax not a gas tax. Your paying for fuel, not it's contents or type.

Answer 2

Now that is an interesting thought.  However the tax is on fuel not gas or ethanol.

Answer 3

You're paying a Motor Fuel tax, not specifically a gasoline tax.

BTW, if they taxed the ethanol portion in the traditional way, as an alcoholic beverage, the tax would double the cost of a gallon of fuel or more!  As ethanol became popular as a motor fuel component, many states had to change their tax laws to accommodate this use.  If they hadn't, you'd be paying $6 a gallon for E10 and up to $20 a gallon for E85 in some states.

Answer 4

Huh?!?!?   Why would you think that tax on ethanol would be any different than tax on gas?

You pay the same tax on lysol and toothpaste.  Just because they are different products does not mean they have different taxes.