Math in the News: Excise Taxes

Have you ever wondered why gasoline costs vary from state to state?  While there are multiple reasons as to why Pennsylvania residents have to pay more than South Carolina residents, but less than California residents for their gasoline, the main reason for the price difference is what is known as an “excise tax.”

Excise taxes are levied on a particular good, such as cigarettes or gasoline, and often vary from state to state.  Here is an article from about how more fuel efficient cars are projected to cost California millions of dollars in excise tax revenue.

What do you think should be done to make up for the lost revenue?  Do you think the excise tax should be raised?

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