The optimal gas tax for California
نویسندگان
چکیده
This paper calculates the optimal gasoline tax for the state of California. According to our analysis, the optimal gasoline tax in California is $1.37/gallon, which is over 3 times the current California tax when excluding sales taxes. The Pigovian tax is the largest part of this tax, comprising $0.85/gallon. Of this, the congestion externality is taxed the most heavily, at $0.27, followed by oil security, accident externalities, local air pollution, and finally global climate change. The other major component, a Ramsey tax, comprises a full $0.52 of this tax, reflecting the efficiency in raising revenues from a tax on gasoline consumption due to the inelastic demand of this consumption good.
منابع مشابه
Determinacy of the Optimal Structure of Tax Revenues Based on Risk and Return
The existence of a stable source of income for the government is crucial for the financing of current and development expenditures. The major revenues of the government in Iran are derived from two sources of tax and oil revenues. Given that much of the oil revenue fluctuations are outside the control of domestic policymakers, it is better to focus on tax revenues in order to earn relatively st...
متن کاملModeling, Survey the Nash Equilibrium and Optimal Tax Fine Rate Determine in the Game of Taxpayers and Tax Affairs Organization
Todays, the importance of taxes as the main source of government revenue has been approved by economic policymakers and therefore, designing an optimal tax system to achieve this subject is essential. Governments are looking for ways to receive their target taxes from taxpayers at the lowest possible cost and at the declaration tax. Taxpayers, on the other hand, seek to postponed their taxes as...
متن کاملDIVISION OF THE HUMANITIES AND SOCIAL SCIENCES CALIFORNIA INSTITUTE OF TECHNOLOGY PASADENA, CALIFORNIA 91125 A General Characterization of Optimal Income Taxation and Enforcement
This paper develops a general approach to characterizing optimal income tax enforce ment. Our analysis clarifies the nature of the interplay between tax rates, audit prob abilities, and penalties for misreporting. In particular, it is shown that for a variety of objective functions for the principal the optimal tax schedule is in general concave (at least weakly) and monotonic; the marginal t...
متن کاملWas there significant tax evasion after the 1999 50 cent per pack cigarette tax increase in California?
OBJECTIVES Several states, including California, have implemented large cigarette excise tax increases, which may encourage smokers to purchase their cigarettes in other lower taxed states, or from other lower or non-taxed sources. Such tax evasion thwarts tobacco control objectives and may cost the state substantial tax revenues. Thus, this study investigates the extent of tax evasion in the 6...
متن کاملAn Optimal Tax Relief Policy with Aligning Markov Chain and Dynamic Programming Approach
Abstract In this paper, Markov chain and dynamic programming were used to represent a suitable pattern for tax relief and tax evasion decrease based on tax earnings in Iran from 2005 to 2009. Results, by applying this model, showed that tax evasion were 6714 billion Rials**. With 4% relief to tax payers and by calculating present value of the received tax, it was reduced to 3108 billion Rials. ...
متن کامل