Facts A new political party proposes to repeal the present f

Facts: A new political party proposes to repeal the present federal income tax and estate and gift taxes, and replace them with a single federal tax on gasoline. They say that they have estimated the necessary rate for such a tax to be revenue-neutral by dividing current revenues from these income, estate, and gift taxes by current gasoline consumption in the U.S. They say that the rate would be around $20 per gallon in order to be revenue-neutral, but they propose, instead, a lower tax rate of S15 per gallon. They say the shortage would be made up by cuts in government spending. They assert the result would be fair, simple, remove the present double (triple, quadruple, quintuple?) taxation in our present system, encourage savings and investment, and cause unprecedented growth in jobs and in the economy. Most importantly, it would allow taxpayers to keep more of their own money and would be moral (whereas the present system is immoral). They emphasize that our present tax system picks winners and losers and that this tax would treat everyone the same. They further assert that this system would end the special tax favors and deals that are presently given by Congress to some taxpayers

Solution

Ans: 1) Industries which would likely benefit with the step :

a) Real Estate

b) Mutual Funds/ Banks

c) Batteries

2) Industries which would get hurt from the decision

a) Airlines

b) Auto Industry

c) FMCG (as transportation cost will increase)

2 products , that would be a good investment based on this decision:

i. Electric Vehicles

ii. Financial instruments.