Download Gas Tax Raise

For raising the gas tax to $2
per gallon
Diana Snelling
ChE 384
12/6/07
Price of Gasoline as % of GDP
Group 1: Poor countries
who export oil: <1.5%
 Group 2: Wealthy
countries: 4 - 8%
 Group 3: Poor countries
who import oil: >10%
 US is placed in “no
man’s land” at 2.5%

Conclusions
Price of gasoline is not at present set by
the free market
 The government needs to tax gasoline to
account for the externalities of this energy
 Smaller government would be possible
without our “addiction to foreign oil”.
 New cleaner transportation technologies
suffer competing with an artificially low gas
price set by the our government
