It's is not simple at all to tax fuel at the source!!
You have completely forgotten about import/export. If you tax only American fuel, then American exports become very expensive, while imports become cheap.
Guess what happens next?
Setting up a tax scheme for fuel that taking into account import/export is incredibly complicated, your system is probably the most complex solution there is!
You have completely forgotten about import/export. If you tax only American fuel, then American exports become very expensive, while imports become cheap.
Guess what happens next?
Setting up a tax scheme for fuel that taking into account import/export is incredibly complicated, your system is probably the most complex solution there is!