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Re: Re: Cap’n Trade: Don’t Cut the Gas Tax, Raise It—A Lot
by
Anonymous
I agree but to make it pass it must be a zero sum game for the average Joe...
Read this proposal:
Based on the fact that average family drives about 20000 miles a year in a 20 mpg(actual mileage) car = 1000 gallons -
$2000 April 15 Federal income Tax rebate for each family
Start April 16 with $2.18.4 per gallon Federal Gasoline tax.
This is a zero sum game for the average family - but they get the money up front and may use the money to buy a higher mpg vehicle.
Walk to work - make $2000
Drive a Prius 20000 miles a year - make $1000
Drive a Hummer 5000 miles a year - make $1000
Drive a Hummer 20000 miles a year - lose $2000.
The Federal gas tax has been stuck at 18.4 cents per gallon since mid 1990’s when gas was under a dollar - so this is really a return to previous rates and doesn’t bring us to World parity in price at the pump.
The tax is really progressive in that:
The rich have more cars boats planes and other gasoline toys
The rebate will selectively benefit the less wealthy who tend to have older smaller cars and often can’t get a new car unless they had $2000 for a down payment.
Everyone thinks they get better gas mileage and drive less than they do - so will pre-calculate this proposition favorably.
Again - conservatives will like the idea of use tax as opposed to income tax.
Law and order types will like the fact that those who don’t file will not get any benefit.
Anti -illegal immigrant conservatives may be smart enough to notice that it will put significant pressure on undocumented denizens - though I suspect the effect will be very small based on their limited driving.
Business can have the rebate (but not more than $2000) only against actual gas receipts - otherwise sham claims.
Business will also benefit as Diesel would not be taxed and more should be available as gasoline use decreases and more crude in made into diesel and likewise into jet fuel.
Phase in may be necessary to sell this but it will diminish the possibility of using the rebate to buy new technology.
The car companies need to and could benefit and big oil can afford a slump in sales. The State and the Nation could use less wear and less congestion on the highway system.
This brave step would increase respect for the ability to sacrifice the Americans have shown in the past with rationing and sacrifice in the wars and ability to come together for the common good as during the depression
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