Gasoline is taxed by the states, also, some much more than others. California has a massive new tax on gasoline that started at an increase of about 12 cents per gallon, and could go as high as 75 cents per gallon based on the liberal theory of climate change. California is extending its version of “cap and trade” to automobiles, in order to try to cut carbon emissions. The amount of the new California gasoline tax will fluctuate based on market prices for pollution.
In other states, such as Maryland, there is an automatic increase in gasoline taxes. Maryland’s new Republican Governor Larry Hogan, who defeated the Democratic Lieutenant Governor in a big political upset last November, has called for the repeal of the automatic increases in gasoline taxes there. Maine and Wisconsin have already repealed their automatic hikes in taxes on gasoline. On average, nearly 50 cents of the cost of a gallon of gasoline is taxes, including federal and state. As gasoline prices dipped below $2 a gallon, more than a quarter of the cost of the gasoline is taxes, and most people think that is too much.
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