Question
Ohio drivers will pay more at the pump this summer if the legislature approves a $1.2 billion gas tax increase recommended Thursday by Gov. Mike
Ohio drivers will pay more at the pump this summer if the legislature approves a $1.2 billion gas tax increase recommended Thursday by Gov. Mike DeWine. DeWine is seeking an 18 cent-per-gallon increase in his $7.4 billion two-year transportation budget, which was presented to lawmakers Thursday morning. That would kick gas tax from 28 cents per gallon to 46 cents and would raise an estimated $1.2 billion a year for the state's pothole-pocked roads and deteriorating bridges, including $480 million for local government projects.
a. Discuss the relative change of the tax and the relative change of the tax ratein the above situation. Explain the difference between the two and calculate both of them. Identify any missing information that is needed to calculate these and state your assumption that you use to do the calculations.
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