</font><font color="blue" class="small">( ...If we had the discipline to conserve, they would definitely notice....Conservation would be so easy for most people because we waste so much but we don't want to make the sacrifice by ourselves...)</font>
I mentioned this in another post (about steel prices), but conservation is the only way to fight the gas prices. Unfortunately, you're correct that we lack the discipline to do it ourselves.
It was for this reason that back in 1993, Senator Charles Robb introduced legislation (S.1068) that would have increased gas taxes by a total of 50 cents per gallon.
Economics is normally based on supply and demand, and as the price of something increases, demand is usually lowered. In the case of gasoline, we appear to be so devoted to our bad habits and gas guzzling cars, that we'll pay any price rather than change our consumption. Sometimes, what it takes is a shocking increase so high that it gets our attention.
The beauty of a very high gas tax increase is that many consumers wouldn't have to pay it. If they cut back in their driving, car pooled more often, or bought more fuel-efficient vehicles, their consumption would drop and the increase in tax would be absorbed. For those who refuse to give up their giant SUVs, etc., they'd just have to pay the price for their stubbornness. And, the increase gas tax revenues would pay for much-needed infrastructure improvements on our highways.
Back in 1999, even Gregory Mankiw, who is now President Bush’s Chairman of the Council of Economic Advisors, argued that a 50 cent gas tax is a necessary component...he explained that increasing gasoline taxes would lead to more rapid economic growth, less traffic congestion, safer roads, and reduced risk of global warming--all without jeopardizing long-term fiscal solvency. 'This may be the closest thing to a free lunch that economics has to offer.” [Fortune, 5/24/99]
One objection to an increase in gas taxes is that it would penalize those who have no choice in the amount of miles they are required to drive to do their jobs, and may have no choice in the vehicle they use. There are a couple of ways around this. First of all, there are always choices in vehicles. For example, the truck industry has LP Gas-powered trucks available, but few businesses buy them -- even LP Gas "bobtail" delivery trucks are most often diesel powered! Second, the vehicle manufacturing industry could come up with more fuel efficient vehicles; they just have to have people demand them.
As for the matter of people who are required to drive a certain distance in their jobs and can't conserve, it might be interesting to have a national gas card that would produce a discount in the taxes. Recently, the State of Florida raised the tolls for the Florida turnpike. However, for anyone that uses the state's "SunPass" transponder, the rates were NOT increased -- the SunPass bill is still at the old toll rates. Generally, it is the people who use the turnpike regularly, such as commuters and service and delivery trucks, who have SunPass. Something similar could be worked out so that eligible commercial users could have a TaxPass card and avoid the increase.
Someone recently characterized a gas tax increase as a "wacky" idea. Personally, I think it's a great idea, if handled properly.
I mentioned this in another post (about steel prices), but conservation is the only way to fight the gas prices. Unfortunately, you're correct that we lack the discipline to do it ourselves.
It was for this reason that back in 1993, Senator Charles Robb introduced legislation (S.1068) that would have increased gas taxes by a total of 50 cents per gallon.
Economics is normally based on supply and demand, and as the price of something increases, demand is usually lowered. In the case of gasoline, we appear to be so devoted to our bad habits and gas guzzling cars, that we'll pay any price rather than change our consumption. Sometimes, what it takes is a shocking increase so high that it gets our attention.
The beauty of a very high gas tax increase is that many consumers wouldn't have to pay it. If they cut back in their driving, car pooled more often, or bought more fuel-efficient vehicles, their consumption would drop and the increase in tax would be absorbed. For those who refuse to give up their giant SUVs, etc., they'd just have to pay the price for their stubbornness. And, the increase gas tax revenues would pay for much-needed infrastructure improvements on our highways.
Back in 1999, even Gregory Mankiw, who is now President Bush’s Chairman of the Council of Economic Advisors, argued that a 50 cent gas tax is a necessary component...he explained that increasing gasoline taxes would lead to more rapid economic growth, less traffic congestion, safer roads, and reduced risk of global warming--all without jeopardizing long-term fiscal solvency. 'This may be the closest thing to a free lunch that economics has to offer.” [Fortune, 5/24/99]
One objection to an increase in gas taxes is that it would penalize those who have no choice in the amount of miles they are required to drive to do their jobs, and may have no choice in the vehicle they use. There are a couple of ways around this. First of all, there are always choices in vehicles. For example, the truck industry has LP Gas-powered trucks available, but few businesses buy them -- even LP Gas "bobtail" delivery trucks are most often diesel powered! Second, the vehicle manufacturing industry could come up with more fuel efficient vehicles; they just have to have people demand them.
As for the matter of people who are required to drive a certain distance in their jobs and can't conserve, it might be interesting to have a national gas card that would produce a discount in the taxes. Recently, the State of Florida raised the tolls for the Florida turnpike. However, for anyone that uses the state's "SunPass" transponder, the rates were NOT increased -- the SunPass bill is still at the old toll rates. Generally, it is the people who use the turnpike regularly, such as commuters and service and delivery trucks, who have SunPass. Something similar could be worked out so that eligible commercial users could have a TaxPass card and avoid the increase.
Someone recently characterized a gas tax increase as a "wacky" idea. Personally, I think it's a great idea, if handled properly.
