Some alternatives to a gas tax
A lot of people hate taxes. If asked, would you rather have death or taxes, some people might need a few moments to consider the question. How much of a tax are we talking about, some people might need to ask before answering the question. A hatred of taxes explains why you often hear people say global warming is real, and taxes are the right solution but don't raise my taxes. There is a 50 cent gas tax bill in the works now, and - I have to admit - I started thinking whether that 90 percent certainty (that humans are causing global warming) that the IPCC is talking about really isn't all that definitive. So, I thought, why not seriously consider some alternatives to the gas tax? Here are two of my favorites;
- Only tax when gas prices are low. A minimum price for gas would allow energy technologies that don't make sense when competing with low gas prices to develop. It would go a long way to answering critics that say gas prices are illegally manipulated anyway. Some states already have minimum prices for ethanol. I think gas deserves that kind of treatment.
- Tax gas but then give it back. Tax gas as much as you like but make the amount tax deductible. The plans vary but the gas tax could also be equal to a cut in payroll taxes, which could use some cutting. No one could complain about a gas tax then because it's not really a tax, it's more of a gas loan. The gas tax rebate has had problems because there really are no "lock boxes" in government for any taxes, and personally, I think I might drive more if I knew it meant lower taxes.
[Source: Times Herald]
Reader Comments (Page 1 of 1)
Dave 7:05PM (10/14/2007)
I think we should tax gas/diesel.....and nothing else.
Eliminate income taxes and sales taxes.
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BlackbirdHighway 7:40PM (10/14/2007)
It's supposed to hurt. Feel that burn? That means it's working. If buying gasoline is painful, then you will buy less.
To keep it neutral overall, Al Gore proposed reducing, possibly eventually eliminating regular taxes, and replacing them with a carbon tax. I don't think you can entirely eliminate other taxes. If there was only a carbon tax, then once everyone switches to a carbon-free lifestyle, the gov't would then run out of money.
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dhofmann 7:42PM (10/14/2007)
"Only tax when gas prices are low."
The gas companies would love this new subsidy!
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GoodCheer 10:16AM (10/15/2007)
I proposed this a few days ago, but this post is right on topic so I'll throw it out again:
Levy an import tariff on foreign oil.
a) It would raise the price to consumers at least until we stop importing oil, so encouraging efficient living.
b) It would effectively subsidize the production of domestic fuels, whether ethanol, bio-diesel, or fossil fuels (though I'm not keen on ethanol, it is at least domestic).
c) It more directly addresses the "energy security" issue than other approaches.
d) It doesn't sound much like "gas tax" until you think about it, so proposing it might not be political suicide.
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Chris M 7:34PM (10/15/2007)
One reason people complain about taxes is that they feel they are not getting their moneys worth, either they don't know where it is going, or because they find out about some gold-plated wasteful mismanagement of funds.
Most people would accept a higher gas tax if they knew it was going to significantly improve the roads and other transit facilities. When they pay taxes and don't see results, they get upset.
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scappy 10:03AM (10/16/2007)
For starters either reform or eliminate the gas guzzler tax. It makes no sense that someone driving a relatively efficient Magnum pays a premium over someone driving a Tahoe.
Raise the gas tax, use the argument that is makes economic sense. The gas tax is a flat rate per gallon, so it does not adequately take inflation into account. It costs more to repair roads today than it did 10 years ago.
Turning every road into a toll road via GPS is a horrible idea because of the breach of privacy.
There is no way the oil companies will allow a tariff on oil. I know in theory this is not the way our governemnt works, but in our sad reality it is.
There are alos two flexible options that can be thrown into a higher gas tax. Those living below the poverty line can apply for reimbursement. And the most important thing I think a higher gas tax would do is allow the governemnt more control of the price of gas in an emergency. Wouldn't it have been nice if the fed could have temporarily repealed a 0.50 / gallon tax post Katrina?
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