Essay On Gas Tax
The topic of this paper is gasoline prices and higher state sales tax.
According to Singers(Aug 24,2017), ITEP S (July,2017), (July,2017),(Aug 2011), and(December
2011), higher sales and gas tax in Connecticut have consequences and a solution proposed to reduce
tax burden on low income family. Based on the readings and my understanding of this topic, I
conclude that increasing sales and gas taxes in Connecticut to fix a budget crisis will be financially
harmful to low income families and needs to be address with new policy. Singer(Aug 24,2017),
pointed out that, Connecticut legislators are deciding to increase sales tax from its current level to 6.85
percent to fix a budget deficit, estimated to reach $3.5 billion in two years and ... Show more content
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1. Comparing sales tax to other states shows that, Connecticut s sales tax is not among the highest.
According to Singer s (Aug 24, 2017), the Connecticut 6.35 percent sales tax ranks thirty two in the
US. It s higher than certain state such as Massachusetts, and lower than others, such as Rode Island
and New York. As Connecticut tries to grow its economy and fix it budget crisis with higher sales tax,
will create a financial problem for the lower and middle classes. based on estimate produced by ITEP
data, low income families spend seventy five percent of their income on items subjected to sales tax,
higher than fifty percent spent by middle income families and ten percent spent by the richest families
(ITEP). Considering this, upper income families are not affected by the tax, but low and mid income
people who cannot afford the tax. Comparing Connecticut s gas tax to other states shows that,
Connecticut s gas tax is not among the highest. According to the graph provided by the ITEPS
research report (July 2017), Connecticut s four percent gas tax is higher than certain states such as
Kentucky, South Dakota, and Michigan, but lower than other states such as Alaska, Louisiana and
New Mexico. If Connecticut decides to
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