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    Gasoline Tax

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    By increasing the taxes on gasoline, it has been proposed to raise the cost of gasoline in the US to $8.00/gallon, a price similar to that charged in the rest of the world. What will be the environmental cost and benefit? What will be the political cost and benefit? What might be the social costs and benefits? How will it affect the cost of operating and using private cars and public transportation? Who will bear the burden? Will it be equally distributed across all workers and retired persons, across all parts of the country, across rural and urban communities? Draft a letter to your congressperson, clearly stating your stand on this issue and why.

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    Solution Preview

    Dear Congressperson,

    I am writing this letter to outline my concern about increasing the taxes on gasoline. The new gasoline taxes will increase the cost of gasoline to $8.00/gallon. This will increase the cost of by more than $4.00/gallon for the average person in the United States.

    The increased cost of gasoline will increase the production of natural gas, because of the higher demand of natural gas. Also, the automobile industry will see an opportunity to increase profits by producing automobiles that run on natural gas. The increased natural ...

    Solution Summary

    The expert examines the purpose of increasing the taxes on gasoline.