Re: If one HAS to place a tax (which I am never one to argue for), taxing vehicle purchases based on gas consumption would make more sense.
Buying cars doesn't use oil, buying gas uses oil.
A parent who wants a big SUV to haul the neighborhood kids around a 5 mile loop each day doesn't use gas much gas, it's anyone that commutes 75 miles each day in an SUV that uses gas.
The gas guzzler tax is not a well targeted economic incentive.
Here's one for you - eliminate the employee half of Social Security and Medicare taxes, providing a large, immediate raise for workers currently most impacted by energy costs, and eliminating some paperwork for businesses. Replace the revenue in those programs with a tax on imported oil.
Those most impacted by the energy tax increase will be those most benefitted by the reduction in payroll taxes.
It's a zero sum program, with tax cuts equalling tax increases, but consumers will have a significant incentive to save fuel.
You'll also be encouraging the economic segment that's most familiar with using public transportation to use public transportation.
Punishing somebody who buys a $125,000 Mercedes with a gas guzzler tax may give some people some satisfaction, but it likely saves zero fuel. Handing back to someone who makes $7 per hour, 50 cents of that, but adding a buck a gallon to what he pays for gas for that used car he owns might get hime to take the bus or find a more fuel efficient car. (guzzler or not, most miles are driven by people who buy their cars used and don't pay a guzzler tax) |
