Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For every $1 the Texas state government collects from the oil and gas industry, Texans pay $8 in sales tax to the state government. Why

For every $1 the Texas state government collects from the oil and gas industry, Texans pay $8 in sales tax to the state government. Why does this discrepancy exist? Federal law requires oil and gas taxes to be low to encourage Americans to drive. The 1876 Texas Constitution imposes a steep individual tax that has never been reduced. Texas policymakers want to encourage the production of oil and gas in the state at almost any cost. This discrepancy has not been brought to the attention of Texas policymakers yetFor every $1 the Texas state government collects from the oil and gas industry, Texans pay $8 in sales tax to the state government. Why does this discrepancy exist? Federal law requires oil and gas taxes to be low to encourage Americans to drive. The 1876 Texas Constitution imposes a steep individual tax that has never been reduced. Texas policymakers want to encourage the production of oil and gas in the state at almost any cost. This discrepancy has not been brought to the attention of Texas policymakers yet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: N Gregory Mankiw

9th Edition

1464182892, 9781464182891

More Books

Students also viewed these Economics questions

Question

Why is a work sheet used?

Answered: 1 week ago

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago