Gas Revenues are now expected to be $70 million less
than what was projected a year ago. Higher gas prices are also resulting in fewer car sales and that means motorists will pay $26 million less than expected or vehicle registrations.
This really does show that those who call for a higher gas tax to fund road projects (in Minnesota the leader was Rep. Ron Erhardt, R-Edina) clearly don't understand the consequences/simple economics. Higher prices, less demand, lower prices more demand. Higher taxes, less revenue, lower taxes, more revenue. Higher tax, higher price of gas, less revenue.
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