Then why is it that the states with the lowest gas taxes have the highest gas prices?
Read today%26#039;s price/tax nationwide survey. It utterly contradicts the Republican position on this matter.
Explanations and guesses are both welcome.
If raising taxes on gas is supposed to make gas more expensive?
Because there are more factors than gas taxes that go into gas prices. Different states have different refining requirements, and local economies and cost of living drives prices too. The gas tax is only a part of the cost.
There%26#039;s no question that gas taxes make gas more expensive. It%26#039;s an added direct cost, and the price doesn%26#039;t react enough for a drop in demand to drop the cost of gas more than the taxed amount.
Check out the article linked below for a good discussion of what makes up the cost of gas.
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