In the aftermath of Hurricane Katrina there have been proposals both to cap gasoline prices (e.g. Hawaii) or to suspend the collection of state or federal gas taxes (e.g. Georgia) as a response to rising gas prices. Although retail gasoline prices have reached an all-time high, gasoline taxes are not to blame. Gasoline taxes (both federal and state) average 43 cents per gallon and have fallen in real terms. Gasoline prices and taxes do vary across regions but there is little correlation between tax rates and prices.
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