Arlington, VA—Cars are essential for many Americans and the cumulative costs, many of which stem from legislative action, are making personal transportation increasingly unaffordable.
From the moment a car is purchased, consumers face sales tax, registration fees, and licensing costs that vary widely by state. Ongoing expenses like fuel are also needlessly increased by policy decisions, including federal and state taxes and environmental regulations that affect supply and pricing.
Beyond direct costs, broader regulations—such as fuel economy standards and electric vehicle mandates—impact the types and prices of available vehicles. While these policies aim to reduce emissions, they also raise manufacturing costs and shift expenses onto consumers, often in ways that aren’t immediately visible.
Public policy measures that regulate vehicle fuels contribute to higher gasoline prices, further increasing costs.
These government interventions of direct taxation, environmental statutes, and market manipulation are driving up the cost of car ownership, adding upwards of $11,000 or more to the purchase price and its first year on the road. Excessive government encroachment is making it harder to get behind the wheel, a necessity of modern American life.
Many environmental regulations have minimal beneficial impacts but impose steep financial burdens on consumers. Plenty of the funds collected are not directed at the appropriate destination or are not being used effectively. Consumers are paying too much for government programs that offer little in return.
Policies that do little to improve air quality or climate need to be revised or abandoned. Lawmakers need to put an end to misallocating or squandering the various funds secured through vehicle taxation methods.
This report calls for a reevaluation of these measures and advocates for consumer choice, market-driven innovation, and more efficient public spending. We need to strike a much better balance between appropriate taxation, regulatory actions, and the affordability of owning a vehicle.
Read the full report below.