The tax on gasoline in England is close to $3.20 per gallon, whereas the federal excise tax on gasoline in the United States is 18.4 cents per gallon. Suppose the U. S. government raised the federal excise tax to the English gas tax rate of $3.20. Explain the likely impact of that higher tax rate on conservation, oil exploration, and the development of substitutes for gasoline.

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The Answer of The tax on gasoline in England is close to $3.20 per gallon, whereas the federal excise tax on gasoline in the United States is 18.4 cents per gallon. Suppose the U. S. government raised the federal excise tax to the English gas tax rate of $3.20. Explain the likely impact of that higher tax rate on conservation, oil exploration, and the development of substitutes for gasoline.

The Tax on Gasoline in England Is Close to $3