Washington State gas taxes will rise by 7 a gallon now and by a further 4.9 a
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Washington State gas taxes will rise by 7¢ a gallon now and by a further 4.9¢ a gallon next summer.
If the demand for gasoline is inelastic and the supply of gasoline is elastic, who will pay more of the increase in Washington’s gas tax: drivers or the gasoline companies? If there is a big switch to natural gas for big trucks, how will the tax incidence change?
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