I'm for a flat tax the flatter the better so a gas tax is marginally better than the progressive income tax or property taxes. So if we get a shot at choosing which tax to cut I vote against cutting the gas tax.
The idea that price of gas would go down if we cut the tax on gas is somewhat complex. The price of gas is determined by the supply/demand curve. It would seem that there could be some marginal reduction in prices but it would not be a one-to-one relationship. In other words cutting 50cents taxes out a 3 dollar gallon of gas will not result in 2.50 gas.
The only way to guarantee lower gas prices is to increase marginal supply until you drive down the price. Hard to guess where that is. But for sure the equation is nonlinear.
I'm for a flat tax the flatter the better so a gas tax is marginally better than the progressive income tax or property taxes. So if we get a shot at choosing which tax to cut I vote against cutting the gas tax.
The idea that price of gas would go down if we cut the tax on gas is somewhat complex. The price of gas is determined by the supply/demand curve. It would seem that there could be some marginal reduction in prices but it would not be a one-to-one relationship. In other words cutting 50cents taxes out a 3 dollar gallon of gas will not result in 2.50 gas.
Glad, you're not an English major.
Yikes..................