Just a thought... (Gasoline Taxes)

[No Mandate Here.]

With even Friedman of the NYT OpEd page now calling for a 50 cent per gallon gas tax to encourage the long overdue weaning from fossil fuels, here is another idea.

How about a tax that is progressive. Evey time the tens digit changes on the pump, another dollar of tax. This way, those who choose to use less, or have enough time to refuel more frequently, can avoid it by stopping at $ 9.99. Those who are using a lot, and don't have the time to stop regularly, end up paying more. Diesel would be exempt.

Yeah, I know that a lot of contractors and others will complain. (I am one, but I drive a 28 MPG passat wagon.)

The concept of shared sacrifice used to be big in wars of the past- WWII and before. It doesn't seem to exist now.

[TreasonousBastard]

1. Really difficult to control...

and there would be hell to pay from "consumer advocates."

I'd be thinking more in terms of rationing, also extremely difficult to control properly. During WWII we had gas ration coupons, and while I was in the Army in Germany, we could get ration coupons to buy "tax-free" gas. Counterfeitng, theft, and a black market in coupons caused some problems, but it worked, more or less.

Right now, of course, there's no way anyone could pass a gas tax increase, but that would be the simplest way to reduce consumption somewhat. Unfortunately, there are too many people out there who will happily pay any price to fill their gas guzzlers, and the tax increase would end up screwing the lower earners who have no alternatives.

If we end up with shortages and gas lines again, it's not price, but rationing that will be necessary.

The simplest and most painless ways to help the problem right now would be to eliminate the tax subsidy on "personal" trucks and raise the CAFE standards. A small business buying a company car finds that it's sometimes cheaper buying a Navigator than a Taurus after the accelerated depreciation on the Navigator. The tax savings could even pay for the extra gas the Navigator uses.

[underpants]

2. Interesting idea but wouldn't it lead to "gas laundering"?

Just like deposits or withdrawals from a bank that hit $10K+ and register on the radar screen what is to stop someone from stopping the pump at $9.-- and then starting all over again?

Just a thought.

I think SOME kind of reasonable standards for mileage would be more effective. Last week myself and a coworker went to pick two new cars for the organization and almost none of the "trucks" got over 19 MPG. It was a Chevy dealership and their new half car half truck (name?) got 12 city 19 highway....19?

[muriel_volestrangler]

3. The main effect would be long queues at gas stations

as people fill up with small amounts, which takes longer for the amount of fuel used. It would also cause more fuel to be used, because people would keep their tanks topped up, meaning they carry more fuel around, on average, meaning more weight in the car, needing more fuel to accelerate it.

If you want to encourage people to use less, then tax the fuel, not the pump. What's your next idea, the return of the window tax?

[Baltimoreboy]

4. That will still soak the poor

And it certainly isn't progressive.

[sangh0]

5. In that case, a tax on SUV's and low mileage vehicles

combined with higher taxes on the rich. I'm sure your concern for the poor will allow you to support this

[Dont Hurt Me]

6. Let me get this straight

You're advocating more taxes? Especially on gas which costs record highs now. No thanks i already pay enough for gas.