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Governor. Joseph. Soaktherich is concerned about his state's budget deficit. He does not want to reduce spending, so he has decided to raise taxes. He
Governor. Joseph. Soaktherich is concerned about his state's budget deficit. He does not want to reduce spending, so he has decided to raise taxes. He is thinking about increasing taxes on the sellers of gasoline because he believes that this will increase tax revenues substantially and he wants the rich gasoline companies to bear the burden of the tax increases, not everyday consumers. He is proposing that gasoline sellers pay the state government 50 cents for every gallon of gas that is sold in his state. You are an economist on his staff and are asked to analyze his proposal answering the following two questions. Will this tax on gasoline sellers achieve his goals? Would a similar tax on soda be better
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