Gasoline Taxes and Gasoline Prices

Aaron Braaten at Grandinite has a very thorough discussion of the share of gasoline prices accounted for by taxes. The correct formula, as he points out, is neither linear nor constant. Here is his graph:

Aaron is in Alberta, and so his calculations refer to Alberta prices and taxes. In his article, he points out that blaming the high gasoline prices on gubmnt taxes is probably too strong at best and possibly incorrect, depending on the context.

Too bad he hasn't learned how to spell "gubmnt" yet.

Grandinite is a good blog. I've added it to my list.