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2: Because they know people will buy it, regardless, so they sort of got everyone dead to rights there
3: The politics of some lawmakers might lead them to believe that it will discourage a reduced use of gasoline
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∙ 10y ago
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Why is a 5 percent sales tax on gasoline regressive?
This is a fixed rate (proportional) tax, not a regressive tax.
Cost of gasoline in 1999?
In Laurel, Maryland, gasoline fell to about 80 cents in that year. This varied from state to state according to the local gasoline tax. At that time, the national gas tax was 19 cents per gallon, but in Maryland the state tax was 30 cents, meaning over half of the price of gasoline was from taxes.
Tax on gasoline is an example of what type of tax?
Tax on gasoline is an example of an excise tax. Excise taxes are taxes on specific goods or services that are typically included in the price of the product and paid by the consumer, rather than collected separately. The purpose of an excise tax is usually to discourage the consumption of the taxed item or to raise revenue for the government
What percentage of money spent on gasoline does each of the entities involved in the production of gasoline receive when gas is sold?
Costs of: Crude oil 67% Refining 14% Tax 13% Distribution 8%
Using the concept of elasticity explain how a tax on gasoline would affect firms and consumers Who would pay the larger burden of the tax?
First, a quick discussion on elasticity of demand:When demand for an item is perfectly elastic, as prices increase the demand for the item decreasesWhen demand for an item is perfectly inelastic as prices increase the demand for the item does not changeIn the real world, few items are perfectly elastic or perfectly inelastic. Gasoline is an interesting item when it comes to elasticity. Gas is nearly perfectly inelastic at some levels of consumption because most people need to use it to get to work. This is starting to change however because as technology develops alternative fuels gas may become much more elastic. At some levels of consumption gas becomes elastic, for example if prices are too high some people will choose to skip a vacation soas not to consume gas.Now to explain elasticity of demand and taxes:When demand is perfectly inelastic, all of the tax will be passed on to the consumer.When demand is perfectly elastic, all of the tax will be passed on to the to the producer.So now to answer the question as to who would pay the larger burden of the tax. Right now (11/2009) gasoline is much more inelastic than it normally is (although it usually is still quite inelastic). For this reason, the majority of the tax on gasoline will be paid by the consumer.
What is the tax on a gallon of gasoline?
there is no tax on gasoline
Is gasoline tax progressive?
No. Most gasoline tax in not progressive. It is a tax per gallon.
Sales tax on gasoline is what kind of tax?
a sales tax on gasoline is an example of what type of tax
A sales tax on gasoline is an example of what kind of tax?
The sales tax on gasoline is a fuel tax, which is labeled as a user tax. The taxes collected from gasoline purchases are remitted to the state government.
What kind of tax is gasoline tax?
A gasoline tax is a tax of so many pennies on every gallon of gasoline. It had the original purpose of providing money for roads. It was based on the theory that the people that used the roads should pay for them. They would pay for them by paying a tax on each gallon of gasoline purchased. That money would go into a fund that would pay for machinery, supplies, land, labor, and whatever else was needed to build roads. After that original purpose, legislatures and other units of government frequently added taxes onto gasoline for other purposes. A+ it's proportional
What tax did President Clinton and other lawmakers agree was too tough on farmers and small business persons who want their heirs to continue their work?
estate
What type tax is a tax on gasoline?
INDIRECT TAX
What kind of tax is a gasoline tax?
proportional
What kind of tax is tax on gasoline?
Proportional
What kind of a tax is a gasoline tax?
proportional
What type of tax is a tax on gasoline?
proportional
The federal and state tax on gasoline?
Indirect tax
