Abstract - The regressivity of the gasoline,tax and,other consumption taxes has been,challenged,on the grounds,that the use of annual as opposed,to lifetime income,and consumption,data leads to a substantial overestimate,of regressivity.Rather than rely on proxies for lifetime income, in this paper panel data on gasoline consumption,and,income,are used to measure,incidence,over an intermediate
... [Show full abstract] time period. When,people,are grouped into 11-year average income deciles, average,gasoline,tax burdens,are only slightly less regressive than annual burdens. The main,reason,for the similarity of annual and,intermediate- run burdens,is the limited degree,of income,mobility over an 11-year period.
