Gas Guzzler Tax

Cars in the US that do not get at least 22.5 miles per gallon have to pay a Gas Guzzler Tax. This tax is the Fed's way of incentivizing the automakers to improve fuel economy. The tax was established in the Energy Tax Act in 1978. It only effects cars. SUVs, pickup trucks and minivans are exempt. You do not have to pay this tax. The automaker (or importer, in the case of foreign vehicles) normally pays the IRS directly. The fuel economy sticker on the window of new vehicles will show the amount of the tax, in case you are interested. The image included with this post demonstrates the Gas Guzzler Tax in the sticker. It is the number located in the lower left.

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