Why not tax gas by the fill-up, not the gallon
Loyal reader Ann asks:
Could the solution be to tax every fill-up and not every gallon? If you've got to raise taxes, wouldn't this be more palatable to consumers?
My reply: It might be more palatable, but it would penalize efficient users of energy. Under your plan my neighbor with the Chevy Suburban would pay no more in gas tax than somebody with a Prius. Half the reason to have gas taxes or cigarette taxes is to discourage use of products that are bad for society. A gas tax isn't just a way to raise revenue. It's a step toward putting a proper price on the carbon emissions that are cooking the planet. And it would install disincentives against wasteful energy use, rewarding the Prius driver or the person who walks to work and penalizing the gas guzzlers.
Comments
Ever been to a gas station with a clientele that doesn't typically use credit cards? They often only put a few gallons at a time in the tank. This kind of fee would hit them harder.
Also, I can imagine all sorts of homebrew secondary tanks in the beds of pick-ups and the trunks of cars---probably not a good idea.
-Adam B
Baltimore
Posted by: Adam B | February 12, 2009 1:39 PM
The Suburban drivers would actually pay much less than the Prius drivers due to the size of the gas tanks.
Posted by: Andy | February 12, 2009 3:03 PM
How about a sales tax tied to price instead of an excise tax per gallon? Owners of high-end vehicles that take higher octane gas would pay more.
Posted by: Michael Agriesti | February 12, 2009 6:53 PM
Instead of a straight gas tax, why not tax the use of fossil fuels altogether? A revenue-neutral carbon-tax would directly raise the price of carbon-based energy, imposing the greatest cost on those firms and forms of energy that produce the most emissions. A carbon-tax would offer a more effective way to reduce emissions and provide powerful incentives for the development of new, climate-friendly technologies.
Posted by: SallyVCrockett | February 13, 2009 7:17 AM