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The solution is pretty simple. The tax should not be levied as a flat amount, but as a percentage of the gas price - just like virtually all other taxes are calculated as a percentage. Politicians could get away with it, by picking the percentage that would equate to the 18c that it is now. However, as gas prices go up (and they will) so will the income from the tax.

by Jasper on Sep 7, 2011 12:46 pm • linkreport

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