Raise The Federal Gas Tax?
Recently, the NY Times' Thomas Friedman wrote an op-ed piece advocating an increase in the federal gas tax
. He sites sales statistics that showed that as gas prices fell, sales of trucks and SUV's spiked and sales of hybrids and small cars fell, as proof that the American consumer doesn't have the self-discipline to wean itself from poor fuel efficiency. While I didn't agree with his notion of what the Detroit Three should build in the future
, I tend to agree with this idea.
While taxes on gas tend to be regressive, impacting lower income people much more than folks who have higher incomes, I tend to think that an increase in the federal gas tax is a good idea. The summer of 2008 showed that the only thing that would get people out of gas guzzlers was high fuel prices. People responded to their shrinking pocketbooks.
Unfortunately, the spiking price of oil and gas over last summer resulted in many consumers making the knee-jerk (and often foolish) decision to dump their vehicles in favor of more fuel-efficient ones. So we would certainly want any increase to be gradual, so as not to cause a shock to consumers.
While I don't claim to be a tree-hugging environmentalist, I do recognize the fact that we need to stop burning things as a way to power our society. As a student of history, I also recognize that our dependence on imported oil is a national security liability. Making gas more expensive is a way to address both issues. I would only hope that the funds from any increase in the gas tax would be used to help fund clean and renewable alternative energy technologies.
So what do you think? Is an increase in the federal gas tax a good idea?
- Posted by
- Lee Scott January 5, 2009, 9:00 AM
- Permalink
- Categories:
- Fuel Economy, Hybrids and Alternative Fuels
- Technorati Tags:
- fuel economy, gas prices, gas tax, hybrids
A gas tax might be a good way of creating a "floor" on gas prices. The problem is that sales and research of alternative vehicles can never gain momentum if gas prices keep fluctuating so radically. A gas tax could be a way of keeping price high -- but not too high -- so that research can progress consistantly.
I like the idea of a slowly-implemented increase in gas taxes, so that everyone can make long-term decisions. Also, it may increase motoring possibilities for enthusiasts, as the money must be used toward transportation alternatives.
Oh, wait, we're talking Congress, here. They would likely just make this tax increase the new transportation budget, and handout big pork for votes.
Raising gas taxes is simply THE smartest place to raise taxes in this country. Our transportation infrastructure is degrading faster than we can maintain it and relatively cheap gas is really hurting our shift to more environmentally friendly transportation. Frankly the europeans pay something on the order of $2/gallon (I think it may be more, actually) for gas taxes...and we pay 18.4 cents, plus state taxes. Now I'm not suggesting $2/gallon taxes, I do think the europeans have gone overboard there, but we can so easily and safely double the federal gas tax without really hurting consumers' pocketbooks significantly...and I also think we should raise taxes on gas more than diesel in an attempt to level out pump prices for those two fuels.