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RE: Why Gas Prices Are Too Low (washingtonpost.com)

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RE: Why Gas Prices Are Too Low (washingtonpost.com)
by Lost at 7:21 pm EDT, Apr 20, 2006

terratogen wrote:

Jello wrote:

terratogen wrote:

Jello wrote:

Now Verleger favors what he calls a "prospective gasoline tax," which would allow the country four years to get ready to do the right thing. Congress would enact a stiff tax of $2 per gallon, to take effect in January 2009, with further increases of another dollar in each of the following three years. To cushion the blow, the Treasury would borrow against the expected tax revenue to buy back the public's gas guzzlers (defined as vehicles getting fewer than 25 miles a gallon) at their 2004 value.

Verleger estimates that this program could reduce U.S. oil consumption by almost 2 million barrels per day in the program's first year and as much as 10 million barrels per day by 2020. At a stroke, that would reduce the power of the OPEC cartel and America's vulnerability to turmoil in the Middle East. As a bonus, it would also reduce emissions that contribute to global warming and increase employment in the auto industry as all those gas guzzlers are replaced.

There's one big problem with Verleger's idea. It's too sane. America likes roaring down Thunder Road, playing chicken with the oil cartel.

I still think it would be better to tax owners of SUV's and other high gas using cars based on mileage once a year. This would encourage people not to drive these types of things if they don't need to, and put the pressure on where the demand REALLY is. Offering a tax cut for owners of hybrid cars would create yet another incentive to use them.

Whats the benefit over taxing at the pump?

There's no way to single out vehicle type easily at the pump. But if the mileage is recorded at inspection, than it's possible to put the tax where it should belong.

There is a single way to single out vehicle type at the pump, since the only relevant statistic is the miles per gallon the engine gets... if your engine burns more gas because it has a large SUV engine, then you pay alot more tax because you burn alot more gas.

RE: Why Gas Prices Are Too Low (washingtonpost.com)


 
 
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