Purchase Solution

The Ramifications of Higher Gasoline Taxes

Not what you're looking for?

Ask Custom Question

One thing governments do well is collect taxes. Taxes are a policy instrument that raise revenue and can control behavior through economic or market pressures.
* What would some of the costs be to the public resulting from a higher tax on gasoline?
* How would a forecast of public demands change with rising taxes on gasoline?
* How would you analyze the political feasibility of increasing taxes on gasoline?

Purchase this Solution
Solution Summary

The ramification of higher gasoline taxes are examined.

Solution Preview

The major cost to the public resulting from a higher tax on gasoline, would be the obvious increase in the prices at the pump at the public would have to pay due to the higher tax on gasoline that petroleum companies would have to pay, and this cost would be transferred to the public. In ...

Solution provided by:
Marcel Parker, MPA
Education
  • Criminal Justice, Elizabeth City State University
  • Master of Public Administration, North Carolina Central University
Recent Feedback
  • "Excellent work, from the time of my post to the time I received a response was days ahead of my requirements. "
  • "Great, Thank You for our Help!!"
  • "Excellent, thank you "
  • "Thank you"
  • "Thank you!"
Purchase this Solution
Free BrainMass Quizzes
Canadian Politics

A brief look into various aspects of Canadian Politics.

View More Free Quizzes
Related BrainMass Solutions

  • Gasoline Tax

    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.

  • Effectiveness of excise taxes

    261576 Effectiveness of excise taxes Please help with the following finance problems. Provide at least 100 words. Analyze the impact of excise taxes on gasoline. 1.

  • Supply and Demand

    As the cost of transportation increases, there is demand for higher wages and the entire economy gets affected. Regulating the supply of gasoline by opening up of new reserves obviates such a situation and helps avert strong inflationary pressures.

  • Impact of technology on productivity and average total cost

    Factors affecting the demand for Gasoline are: 1) Business cycle For example in case of Boom (When GDP is rising higher) the demand of Gasoline will be higher. 2) Weather Good Weather leads to more driving and hence higher demand for Gasoline.

  • Demand for gasoline in competitive market

    (a) an increase in the number of cars (b) the economy moves into a recession (c) an increase in the price of car insurance, taxes, maintenance (d) consumer expectations of substantial price increases in gasoline (a) Demand increases because there

  • Effective methods of financing health care

    It also appears that some citizens would even have to pay higher taxes in order to help to offset the tremendous healthcare costs within this nation, which is spearheaded by an attempt to have wealthier individuals within this nation to pay higher taxes

  • Economics

    With the higher population, the political power of the city would also be raised as the government would have more commercial taxes paid by these community people.

  • Elasticy of Demand

    Since the elasticity of demand for gasoline is high if the government taxes gasoline, there will only be a slight decrease in the purchases of gasoline. The tax collected will be high.

  • The Role of the Government with Respect to Externalities

    In other words, the price is higher than it should be. Cost externalities are negative factors resulting from the consumption or production of a good. Use of gasoline is a prime example.

View More Related Solutions