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To: Robert Salasidis who wrote (182534)11/7/2005 4:30:05 PM
From: Road Walker  Read Replies (1) | Respond to of 186894
 
The solution is not to tax gasoline, but to tax the inefficient use of gasoline. Put a significant tax on the purchase of every (inefficient) gas guzzler, and give a tax credit for the purchase of every (efficient) high mileage car. Technology agnostic.

As the US fleet gets more efficient, the supply increases and the prices come down. The ancillary effects are that less money goes "up in fumes" from inefficient autos and is put to more effective use. The price of gas comes down... even more money for the economy. Lower imports... helps the huge balance to trade problem. Lower demand... price of oil comes down and we quit feed extra petrodollars to the regimes we seem to not like at the moment. All good things... from a program that taxes inefficiency and rewards efficiency.

The only good thing about having 5% of the worlds population and using 25% of the world's oil is that it creates a HUGE opportunity for improvement. In so many different arenas.

John



To: Robert Salasidis who wrote (182534)11/9/2005 7:47:11 AM
From: Dan3  Read Replies (1) | Respond to of 186894
 
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)