Growth Of Federal User Charges An Update

Between 1991 and 1994, user charges--measured in constant dollars--increased by nearly 9 percent, reaching a total of almost $140 billion. User charges are of four general types: user fees, regulatory fees, benefit-based taxes, and liability-based taxes. Between 1991 and 1994, user and regulatory fees increased, while benefit- and liability-based taxes combined did not. User fees--payments made by individuals or businesses for goods or services provided by the government, consumed voluntarily, and not generally shared by other members of society--increased by 10 percent to nearly $107 billion. Regulatory fees--charges that stem from the government's powers to regulate the economy and the activities of individuals--increased by 40 percent to more than $6 billion. Benefit-based taxes--taxes dedicated to trust funds and levied on commodities that are related in varying degrees to use of a publicly provided good or service--amounted to $24.5 billion, an increase of only 1 percent. Liability-based taxes--excises dedicated to trust funds and levied to abate hazards or compensate for injuries--declined by 11 percent to $2.4 billion.