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The total of state and Federal gasoline excise taxes in Idaho is $0.504 per gallon. Of this, Idaho levies a $0.32 per gallon tax and
The total of state and Federal gasoline excise taxes in Idaho is $0.504 per gallon. Of this, Idaho levies a $0.32 per gallon tax and the Federal rate is $0.184. Here is approximate budget share (gasoline expenditure to income ratio (in percentages)) in Idaho by income deciles: Income Decile 1 (Lowest) 2 3 4 5 6 7 8 9 10 (Highest) Gasoline Expenditure / Income 6.74 6.54 6.36 6.08 4.97 4.67 4.38 3.75 3.56 2.40 1. Assuming a gasoline price of $3 per gallon, calculate the ATR for gasoline for each income decile. ATR for Gasoline Income Decile 1 (Lowest) 2 3 4 5 6 7 8 9 10 (Highest) 2. Discuss the implications of these data in terms of the progressive or regressive nature of excise taxes on gasoline. The total of state and Federal gasoline excise taxes in Idaho is $0.504 per gallon. Of this, Idaho levies a $0.32 per gallon tax and the Federal rate is $0.184. Here is approximate budget share (gasoline expenditure to income ratio (in percentages)) in Idaho by income deciles: Income Decile 1 (Lowest) 2 3 4 5 6 7 8 9 10 (Highest) Gasoline Expenditure / Income 6.74 6.54 6.36 6.08 4.97 4.67 4.38 3.75 3.56 2.40 1. Assuming a gasoline price of $3 per gallon, calculate the ATR for gasoline for each income decile. ATR for Gasoline Income Decile 1 (Lowest) 2 3 4 5 6 7 8 9 10 (Highest) 2. Discuss the implications of these data in terms of the progressive or regressive nature of excise taxes on gasoline
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