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September 05, 2005



The gas tax isn't very regressive overall, and is actually progressive for lower-income people. See http://mdahmus.thebaba.com/blog/archives/000188.html



I'll quote from a comment on your own blog:

"Those in the lowest incomes are not in the gas market because they don't have cars. Therefore, gas taxes are regressive for those in the market. That's one definition of regressivity. A problem is that car ownership is one of those variables that helps low-income people increase their incomes. For example, if you don't have a car it is tougher to get to work at various places, tougher to find better employment, tougher to work and take your kids to daycare, etc. So, excluding them from the definition of regressivity seems like circular logic."

I do see your point, but everyone who does have a car (which extends pretty far down the socio-economic ladder) face the same issues. If you want to quibble and say that upper middle class people drive FURTHER than lower middle class people or poor people, that's fine, but even then I still have a hard time believing that the upper middle class person is really getting hit harder in the wallet than the lower middle class person. The driving difference seems negligable in comparison to the difference in income. Therefore, a gas tax would be regressive for those who own cars.

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