Gasoline Taxes

Posted by Andrew O. Smith on Jan 1, 2013 in General | 0 comments

Governments love to talk about raising taxes on gasoline.  The demand for gasoline is inelastic: the revenue-raisers know we will buy our fuel regardless of its cost, and it takes time for us to switch modes of transportation when oil skyrockets.  Opponents see taxes on gasoline as just another form of revenue and resist efforts to incerase them.  I’ll have more to say about this issue...