Gas Tax Essay

Decent Essays

The topic of this paper is gasoline prices and higher state sales tax. According to Stephen Singer’s article(Aug 24,2017), ITEP’S research reports(July,2017), (July,2017),(Aug 2011), and(December 2011), the authors tell the reader the consequences of higher taxes on sales and gasoline in Connecticut and the solution to reduce tax burden on low income family. In Singer’s article, Connecticut legislators are deciding to increase sales tax from it’s current to 6.85% to fix a budget deficit, estimated to reach $3.5 billion in two years and improve state aid to towns. Retailers and consumers criticize the decision and thinks “it would hurt consumers and hurt retailers” (Tim Phelan). ITEP’S research report(Aug 2011), sales and …show more content…

This quotes shows that, upper income families are not affected by the tax, but people who cannot afford. Comparing Connecticut’s gas tax to other states shows that, Connecticut’s gas tax is not among the highest. According to the graph provided by ITEPS research report (July 2017), Connecticut’s four percent gas tax is higher than certain states such as Kentucky, South Dakota, and Michigan, but lower than other states such as Alaska, Louisiana and New Mexico. If Connecticut decides to increase its state gas tax to fix its budget crisis and grow it economy, will encourage government spending. There will be an abundant flow of money to maintain transportation systems and also public project. 2. Excise tax is a sales tax based on the unit of goods and services purchased by individuals. Many state and government officials impose this tax on certain goods such as gasoline, alcohol, tobacco and other product to generate tax revenue. Excise tax can be levied on either the buyer or seller. When the tax is levied on the buyer, the prices of goods increases and the quantity demanded by consumers decline .

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