Thanks to fellow Chicago Fed blogger Bill Testa for some interesting links to use with your discussion on funding roads with gasoline taxes.
First from the Tax Foundation, a look at sales, gasoline, cigarette and liquor taxes by state.
The second link is an article from the Tax Foundation on gasoline taxes.
Both of these articles can provide your students with more insights into the problems faced by state (and Federal) government in funding highway construction and maintenance. The revenue stream is significant. At the same time, in most cases, the tax per gallon represents a smaller percentage of the price as gasoline prices increase. Add that rising prices should affect consumption, and you have a topic that can really help your students hone their economic thinking.
Or the articles can just add fuel to the fire in the debate - if you'll pardon the pun.
Please share your experience in classroom discussions on this topic.
Posted by TSchilling at 11:27 AM Comments (0)