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  • ???There is a common misperception that if a state tax of 5 percent per gallon is eliminated, then the price at the pump will fall by 5 percent,??? says Joseph Doyle, Jon D. Gruber Assistant Professor of Applied Economics at MIT Sloan. ???In fact, our research suggests that retail gas prices drop by as little as 3 percent following the elimination of a 5 percent sales tax.???
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