Mar 9, 2009

Best argument for higher Fed taxes on gasoline

Today's Wall Street Journal (3/9/09) has a special section on the environment (Section R). Can only see it online if you subscribe to WSJ online, so fuggedabout it. In a nutshell, Mike Jackson of AutoNation (car retailer) made the case for why we need a gas tax that will bring price of gasoline to $4.00 at the pump. At current gas prices, says he, the demand for high gas mileage cars is nada, zilch. When gas hit $4.00, all that the consumer cared about was getting high gas mileage. Politicos say that it's a no-go with Americans, but what if it was REVENUE NEUTRAL? That is, what if it was given back dollar for dollar to taxpayers (either through payroll tax holiday or tax credits)? Or, maybe, relief could go to taxpayers based on state's population density or miles driven per capita (that's my idea). Point is, no high gas price, no energy efficiency!

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