Discussion Question: Increasing the Gasoline Tax — VERY EASY.
California has just raised the tax on gasoline by 12 cents per gallon. I bet you’re not happy about this!
Here is a link to an article that gives a bit more background on the issue.
Of course, none of us like paying more for gas, but I think that this is actually a fairly complicated issue and we will therefore use this for our next discussion. To complete the assignment, do the the following:
1. Read the article linked above.
2. Address the questions below by replying to this post:
a. Which group (e.g., buyers of gas or sellers of gas) will be impacted more significantly? Hint: think tax incidence.
b. Are there any secondary benefits that an increased gasoline tax will cause?
c. Are you in favor of the tax increase? Why or why not? If not, how do you suggest we pay for updating our roads?
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