The Interactive Great American Taxing Game: Oil Companies
It’s the Great American Taxing Game and you have chosen to tax oil companies. So what happens if you increase these taxes? And, perhaps more importantly, who will pay these taxes? While you may think raising taxes on oil companies will hurt the profits of big oil barons, consumers are likely to bear the burden of these taxes instead. Your host Prof. Art Carden explains that this happens because the consumer is less responsive to changing prices than the producer. Even if the burden did fall on the oil companies, would that be for the best? Don’t forget to see what would happen if you taxed luxury goods or cigarettes instead.