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Question: Econ Tax burden help?
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Answer #1:
The $0.05/gallon tax will increase the cost of gasoline by that amount across the board. Taxes are a levey the consumer pays as a pass through.It does not matter where the tax is placed in the distribution chain. It will be collected as a pass through from that point on in the chain.In past decades, taxes were collected at the pump. States and the federal governments both have moved the collection point farther up the chain as it is far easier to monitor and collect the tax at fewer registered refineries or terminals than all the individual retail locations.
It is possible for large bulk, pipeline, marine shipments to be moved tax exempt between registered buyers & sellers
By the way, all those oil spill and other environmental fees assessed on the oil industry, they are passed on through the distribution chain to the consumer at the pump.
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