The gasoline tax can be viewed as a corrective tax aimed at multiple negative externalities associated with driving.
Define gasoline tax?
- A fuel tax, often called a fuel duty or a petrol tax, is an excise tax levied on the sale of fuel.
- The majority of nations impose a fuel tax on fuels used for transportation.
- Use gasoline taxes generate money for California's publicly supported road network and mass transit infrastructure development, building, and maintenance.
- Since consumers bear the majority of the cost of fuel taxes and there is little elasticity in the demand for diesel and gasoline, producer profits are not anticipated to decline as these taxes rise.
- Five Quick Facts About Gasoline Prices in the US. The price we pay at the pump is mostly decided by the price of crude oil, which is determined by the dynamics of supply and demand in the market rather than by specific firms.
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