Explain whether increases in gasoline taxes are effective


Explain whether increases in gasoline taxes are effective means for raising tax revenue. Circa 1990 Colorado decided that long-haul truckers needed to pay for a larger proportion of the wear and tear on the state's highways and increased the tax on diesel fuel. Tax revenues went down. Given your discussion on the first part of this question, what economic principles explain this phenomenon?

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Business Economics: Explain whether increases in gasoline taxes are effective
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