Excise taxes can be imposed by federal, state, and local governments—sometimes on the same item at the same time by multiple governmental agencies. Some excise taxes are calculated as a percentage of an item’s price, but others are a flat amount. The federal excise tax on gasoline is a...
On the other hand, it could open the door for some new initiatives to help control emissions, such as a carbon tax, or a fee and rebate plan that would tax the production of fossil fuels and give the proceeds out to all Americans. Perhaps this would be a good time to take a closer ...
What is the impact of an income tax (wage plus investment income) on labor supply? What determines how the burden of a tax is divided between buyers and sellers? Why? What would be the impact of a $2.00 per gallon increase of the tax on gasoline? Who bears the incidence of the tax,...
For example, the Federal Government charges a $0.184 per gallon tax on gasoline. That number is the same for every gallon of gasoline sold in the United States, and it makes up nearly half of the total excises collected by the government. ...
What would be the impact of a $2.00 per gallon increase of the tax on gasoline? What are externalities? Give examples. What is the role of government in reducing externalities? What are the effects of an excise tax levied on the sales of taxi rides? What are negative externalities? What ...
public safety, and related needs. The amount of the tax may depend on the size and value of the vehicle. People may need to pay additional taxes and tolls to drive on specific bridges and roads because their upkeep is more expensive, and typically taxes are also assessed on gasoline purchas...
sales tax on gasoline, using the revenue to service debt on various transportation bonds. When that method was declared invalid in court, the state legislature implemented a tax swap that eliminated a portion of thesales tax on fuel, swapping it for an excise tax that raised the same amount....
State gasoline taxes ranged from a high of $0.681 per gallon in California to a low of $0.0895 per gallon in Alaska as of July 1, 2024 (the most recent data available).14 The federal gasoline tax rate has not changed since 1993. Many state tax rates on gasoline have recently increased...
in turn, may or may not pass the tax on to the consumer by adding it to the price. On the other hand, a sales tax is charged on almost everything and is collected from the consumer
Gasoline taxes are the most important tax on car use. The question naturally arises as to what tax would be adopted by a government that responds to the preferences of the public. To address that issue, we begin with the standard Downsian model, where policy is determined by the median ...